Deferred Compensation Agreement Template Withdrawal Rules In Clark
Category:
State:
Multi-State
County:
Clark
Control #:
US-00417BG
Format:
Word;
Rich Text
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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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Do not complete this Enrollment Form if you are already enrolled in the 457 or 401(k) Plan and wish to elect Roth (after-tax) deferrals. Your contributions and any earnings have the chance to grow tax deferred until you withdraw your money, generally in retirement.The distribution will be made in the form of a single lump sum cash payment. An eligible deferred compensation plan under IRC Section 457(b) (or "section 457 plan") must meet the written plan document requirements. Deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement)