Nys Deferred Comp Early Withdrawal Penalty In Houston
Category:
State:
Multi-State
City:
Houston
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
Thinking of tapping into your retirement savings early? What happens to my account when I die?After Leaving Employment. This distribution would not be treated as an eligible rollover distribution. With the tax-deferred 457 plan, your money goes into your account before taxes come out of your check.