The Arkansas Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees is a comprehensive and tailored financial arrangement designed to help key employees of the bank plan for their future retirement needs. This agreement serves as a supplemental retirement savings plan that allows employees to defer a portion of their salary into a separate account, which will then be invested and grow over time. One type of Arkansas Deferred Compensation Agreement available to key employees is a traditional deferred compensation plan. This plan offers employees the opportunity to defer a percentage of their salary, up to certain limits set by the Internal Revenue Service (IRS), into the account. The funds are then invested and can grow tax-deferred until the employee chooses to receive them in retirement, typically as regular income payments. Another type of deferred compensation agreement offered by First Florida Bank, Inc. is a nonqualified deferred compensation plan. This plan provides additional flexibility in terms of contributions and distribution options compared to traditional plans. Nonqualified plans are not subject to the same limitations as qualified plans and may be particularly attractive to highly compensated key employees who want to maximize their retirement savings. Key features of the Arkansas Deferred Compensation Agreement include: 1. Tax-advantaged contributions: Employees can defer a portion of their salary into the account on a pre-tax basis, reducing their current taxable income and potentially lowering their overall tax liability. 2. Investment options: Employees can choose from a range of investment options offered within the plan, allowing for customization based on their risk tolerance and financial goals. These investments may include mutual funds, index funds, and other vehicles. 3. Vesting schedule: The plan may include a vesting schedule that determines when the employee becomes entitled to the deferred compensation funds. Vesting schedules can encourage employee retention by providing incremental access to the funds over time. 4. Distribution options: The agreement outlines various distribution options, which may include lump-sum payments, periodic installments, or a combination of both, depending on the employee's needs and preferences. The timing and method of distributions may be subject to certain IRS regulations and plan rules. 5. Death and disability benefits: In the event of the employee's death or disability, the agreement may include provisions for beneficiary designation or continued distributions to support the employee's family or estate. It is important for key employees considering the Arkansas Deferred Compensation Agreement to consult with a qualified financial advisor or tax professional to fully understand the specific terms, benefits, and tax implications of the plan. Additionally, employees should carefully review the plan documents, which will provide detailed information about eligibility, contribution limits, investment options, and other important considerations.
Arkansas Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees
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How to fill out Arkansas Deferred Compensation Agreement By First Florida Bank, Inc. For Key Employees?
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Diamond Plan representatives can be contacted through the Little Rock office at 1-866-271-3327 or 501-301-9900.
Key Takeaways. Deferred compensation plans allow employees to withhold a certain amount of their salaries or wages for a specific purpose. Deferred compensation plans can be qualified or non-qualified. Qualified plans fall under the Employee Retirement Income Security Act and include 401(k)s and 403(b)s.
Deferred compensation plans don't have required minimum distributions, either. Based upon your plan options, generally, you may choose 1 of 2 ways to receive your deferred compensation: as a lump-sum payment or in installments.
Deferred compensation plans are an incentive that employers use to hold onto key employees. Deferred compensation can be structured as either qualified or non-qualified under federal regulations. Some deferred compensation is made available only to top executives.
The Plan supplements any retirement benefits offered by the Florida Retirement System (FRS) and the Social Security Administration (SSA). Participants may defer a portion of their income, through a payroll deduction each pay period, to be invested and sheltered from taxation until withdrawn after separation of service.
Deferred compensation plans are funded informally. There's essentially a promise from the employer to pay the deferred funds, plus any investment earnings, to the employee at the time specified. In contrast, with a 401(k), a formally established account exists.
The Florida Deferred Compensation Plan is a supplemental retirement plan for employees of the State of Florida, including OPS employees and employees of the State University System, State Board of Administration, Division of Rehab and Liquidation, Special Districts*, and Water Management Districts* [established under ...
If you are paid on a bi-weekly basis, you can enroll with a minimum of $10 every pay period. The minimum is $20 if you are paid monthly. If you are contributing by a percentage, the maximum amount you may contribute into the Plan is the lesser of 80% of your gross salary or $18,500 per year.