Alabama Deferred Compensation Agreement - Long Form

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Multi-State
Control #:
US-00418BG
Format:
Word; 
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Description

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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  • Preview Deferred Compensation Agreement - Long Form
  • Preview Deferred Compensation Agreement - Long Form

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FAQ

You may make withdrawals from your RSA. The minimum withdrawal is $500 or, if your balance is less than $500, the total balance of your account. Withdrawals are subject to a 20% Federal income tax withholding. You may also annuitize this account and receive additional monthly annuity payments.

When I withdraw my funds, how are they taxed? Distributions of amounts previously deferred as well as interest earned are subject to federal income tax withholding. Amounts deferred after January 1, 1997, as well as any interest earned, will be subject to state of Alabama income tax upon distribution.

Secure a Better Tomorrow with RSA-1RSA-1 is a tremendous benefit offered to you by the Retirement Systems of Alabama. By contribut- ing pre-tax dollars, a member lowers his/her taxable income and reduces the amount of taxes he/she pays. Each and every member of TRS and ERS should take advantage of this plan.

457 plans are IRS-sanctioned, tax-advantaged employee retirement plans. They are offered by state, local government, and some nonprofit employers. Participants are allowed to contribute up to 100% of their salary, provided it does not exceed the applicable dollar limit for the year.

RSA Plan means The Kroger Co. 401(k) Retirement Savings Account Plan, as it may be amended from time to time.

No. The only way to get money out of an ERS account is to terminate employment and withdraw the entire account.

Former employees of RSA, Sun Alliance or Royal Insurance may have pension entitlement in one or more occupational pension scheme.

RSA-1 is an Internal Revenue Code Section 457 deferred compensation plan for public employees. This voluntary plan allows you to save and invest extra money for retirement, tax deferred. Not only will you defer taxes immediately, your contributions and any earnings will grow on a tax-deferred basis as well.

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Alabama Deferred Compensation Agreement - Long Form