Deferred Compensation Plan For Highly Compensated Employees In Collin
Category:
State:
Multi-State
County:
Collin
Control #:
US-00418BG
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
A deferred compensation retirement plan lets employees contribute funds to their accounts and also defer the tax payments on that compensation. A nonqualified deferred compensation (NQDC) plan is an agreement between you and your employer to pay some portion of your compensation in the future.Visit Corebridge Financial to log into your 403(b) elective deferral plan or reach out to your financial advisor. The plan allows you to defer current income or additional compensation today and claim it in the future. Each employee's deferral percentage is the percentage of compensation that has been deferred to the 401(k) plan.