The South Dakota Deferred Compensation Agreement — Long Form is a legal document that outlines the terms and conditions related to deferred compensation between an employer and employee in the state of South Dakota. It is designed to provide employees with a means to save and invest a portion of their salary for retirement purposes. The agreement consists of several clauses that cover various aspects of deferred compensation, including contribution limits, investment options, vesting schedules, and distribution rules. It ensures that both parties understand their rights and obligations regarding the deferred compensation plan. Key terms and phrases often associated with the South Dakota Deferred Compensation Agreement — Long Form include: 1. Deferred compensation: Refers to a portion of an employee's income that is set aside or deferred until a later date, typically retirement. 2. Employer and employee: The agreement is entered into by the employer, who establishes the deferred compensation plan, and the employee, who participates in the plan. 3. Contribution limits: Specifies the maximum amount of money an employee can contribute to their deferred compensation account each year, based on federal regulations. 4. Vesting schedules: Outlines the time period employees must work for an employer before they have full ownership of the contributions made on their behalf. 5. Investment options: Provides employees with a range of investment choices to grow their deferred compensation funds, such as various mutual funds or stocks. 6. Distribution rules: Governs the conditions and methods for distributing the deferred compensation funds to the employee, typically during retirement or termination of employment. 7. Qualified deferred compensation plan: Refers to a plan that meets certain requirements under the Internal Revenue Code, allowing employees to defer taxes on the contributions until they are distributed. 8. Nonqualified deferred compensation plan: Refers to a plan that does not meet the requirements of a qualified deferred compensation plan, thus subjecting the employee to immediate tax on the contributions. Different types of South Dakota Deferred Compensation Agreement — Long Form may exist depending on the employer's specific plan design or industry. These variations may include the addition of specific provisions related to performance-based incentives, profit-sharing components, or employer matching contributions. Overall, the South Dakota Deferred Compensation Agreement — Long Form is a comprehensive legal document that establishes the framework for employer-sponsored retirement savings plans, enabling employees to save for a financially secure future.