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SALARY DEFERRAL AGREEMENT IRC SECTION 457 Louisiana Public Employees Deferred Compensation Plan Baton Rouge, LA 70808 TELEPHONE: 8009377604EMPLOYER /AGENCY NAMEFAX: 2259264447 www.louisianadcp.comEMPLOYER.

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Louisiana Deferred Compensation Plan (DCCL) | LSU...
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Deferred compensation plans also reduce the current year's tax burden on employees. When a person contributes to a deferred compensation plan, the amount contributed over the year reduces taxable income for that year, therefore reducing the total income taxes paid.

Money saved in a 457 plan is designed for retirement, but unlike 401(k) and 403(b) plans, you can take a withdrawal from the 457 without penalty before you are 59 and a half years old.

A deferred compensation plan withholds a portion of an employee's pay until a specified date, usually retirement. The lump-sum owed to an employee in this type of plan is paid out on that date. Examples of deferred compensation plans include pensions, retirement plans, and employee stock options.

You can withdraw your money from 457 before age 59½ without a 10% penalty, unlike a 401(k), but you will owe taxes on any withdrawal.

When you defer income, federal income tax is also delayed, but you do pay Social Security and Medicare taxes. A deferred comp plan is most beneficial when you're able to reduce both your present and future tax rates by deferring your income. Unfortunately, it's challenging to project future tax rates.

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. ... However, you will owe regular income tax on the entire lump sum upon distribution.

That's the idea of a deferred compensation plan, and such plans basically serve as large tax breaks for employees and employers. However, because these contributions are not taxed at the time they are made, that means that you can't get a tax deduction for them.

If your deferred compensation comes as a lump sum, one way to mitigate the tax impact is to "bunch" other tax deductions in the year you receive the money. "Taxpayers often have some flexibility on when they can pay certain deductible expenses, such as charitable contributions or real estate taxes," Walters says.

Deferred compensation means exactly that. You put off receiving earned income until a later date. ... Certain deferred compensations plans have rules for payroll taxes that can result in these taxes being due when the compensation is paid.

Generally speaking, the tax treatment of deferred compensation is simple: Employees pay taxes on the money when they receive it, not necessarily when they earn it. ... The year you receive your deferred money, you'll be taxed on $200,000 in income 10 years' worth of $20,000 deferrals.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232