Ohio Deferred Comp Withdrawal In Wake
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State:
Multi-State
County:
Wake
Control #:
US-00418BG
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Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
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In a 457 account, like Ohio DC, you can withdraw your funds, penalty-free, after terminating employment with your employer. Ohio Deferred Compensation is a supplemental 457(b) retirement plan for all Ohio public employees.It provides participants with educational tools. You may withdraw funds from the Program only upon: 1. Ending your employment (including termination, retirement, or death). 2. Contributing your leave cash-out; transferring and withdrawing money. Contributions and any earnings are tax-deferred (both federal and state income taxes) until money is withdrawn. Withdrawals are taxed at ordinary income levels. Provisions in section 11–202 of the District of Columbia Code, 1940 ed. , and section 213 of title 28, U.S.C., 1940 ed.