Deferred Compensation Agreement Template Withdrawal Rules In Bexar
Category:
State:
Multi-State
County:
Bexar
Control #:
US-00417BG
Format:
Word;
Rich Text
Instant download
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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FAQ
If you take your deferred compensation payments over a period of 10 years or more, those payments will be taxed in the state where you reside, rather than in the state in which you earned the compensation, possibly reducing your state income taxes.
More info
State employee: • This form is used for stopping deferrals, changing product investment or beneficiary. For other questions you may have, please contact the Office of the Tax Assessor-Collector at for personalized assistance.A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee's income without being taxed and are only taxed upon withdrawal. An eligible deferred compensation plan under IRC Section 457(b) (or "section 457 plan") must meet the written plan document requirements. Bexar County offers employees a competitive salary, retirement, and benefits. If you have any questions about completing this form, or about applying for a withdrawal on your own behalf, please contact Carolina Lopez at .