Deferred Compensation Form For Small Business Owners In Contra Costa
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FAQ
The Deferred Compensation Plan is a supplemental retirement plan option in addition to your County retirement plan. Consequently, while you may stop your deductions at any time, you may not have access to the monies until you have separated from County service.
Deferred compensation plans are perks provided by employers to their employees. They allow employees to elect a certain percentage or dollar amount of their compensation to be withheld for a certain purpose, such as retirement.
California Public Employees' Retirement System.
Receiving your deferred compensation in installments over several years can reduce your tax bill, because the smaller installment payments will typically be taxed at a lower rate than a larger lump-sum payment will be.
The CalPERS 457 Plan is a voluntary deferred retirement savings plan that allows you to defer any amount, subject to annual limits, from your paycheck on a pre-tax and/or Roth after-tax basis. Roth contributions, and their earnings, can benefit from the power of tax-deferred compounding.
The normal contribution limit for elective deferrals to a 457 deferred compensation plan is $23,500. The annual elective deferral limit for 401(k) plan employee contributions is $23,500. The annual elective deferral limit for 403(b) plan employee contributions is $23,500.
As a defined benefit plan, CCCERA provides its members with a lifetime retirement benefit (i.e., pension) based on their total years of retirement service credit, age at retirement and final average compensation. Generally, increasing any of these factors will increase your pension.