Deferred Compensation Examples In Phoenix
Category:
State:
Multi-State
City:
Phoenix
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.
Free preview
Form popularity
More info
This notice summarizes the federal. (not state or local) tax rules which may apply to my distribution and explains how I can continue to defer federal income.The Phoenix Employees' Deferred Compensation Program is established to provide one or more tax deferred annuity plans, eligible deferred compensation plans. A deferred compensation agreement is an agreement between a company and an employee that withholds paying some of the employee's salary. Deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement) Important: Any deferral received after the effective date of this payout will automatically be returned to the above-noted participant. We help clients design, document and implement deferred compensation plans that meet the organization's needs and goals.