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Self-Insurance: In a self-insurance arrangement, the employer funds the health plan entirely. This gives them greater control over plan design and the opportunity to make cost-effective choices, like establishing stop-loss limits.
The 457 plan is a type of nonqualified, tax advantaged deferred-compensation retirement plan that is available for governmental and certain nongovernmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pretax or after-tax (Roth) basis.
HMOs contract directly with employees. HMOs provide benefits on a prepaid basis. PPOs differ from HMOs in that they do not provide benefits on a prepaid basis and employees often are not required to use the preferred providers.
How are distributions from nonqualified deferred compensation plans taxed to the employee? They are taxed as ordinary income.
This includes both qualified and nonqualified deferred compensation plans. Qualified deferred compensation plans ? 401(k)s, profit-sharing plans, incentive stock options, pensions ? are protected by the Employee Retirement Income Security Act of 1974, which sets strict fiduciary standards for employee benefit plans.
Your employer will set aside funds in your deferred compensation plan, and the exact amount will be determined by an agreement. You don't have to pay federal income taxes on the contributed funds until you receive the money at a later date, but Social Security and Medicare taxes could apply.
A 401(k) Plan is a defined contribution plan that is a cash or deferred arrangement. Employees can elect to defer receiving a portion of their salary which is instead contributed on their behalf, before taxes, to the 401(k) plan. Sometimes the employer may match these contributions.
Section 401(k) Plans, Section 403(b) Plans and governmental Section 457(b) Plans generally permit employees to defer compensation on a pre-tax basis.