US Legal Forms
Deferred Compensation Agreement - Long Form

Deferred Compensation Plan For Executives In Pima

Category:

Employment - Compensation

State:

Multi-State

County:

Pima

Control #:

US-00418BG

Format:

Instant download

Description

The Deferred Compensation Agreement is designed for executives in Pima, providing a structured plan for retirement benefits that exceed those available under standard employee pension plans. This agreement stipulates that upon retirement, the executive will receive monthly payments for a specified duration, calculated based on a fraction linked to the National Consumer Price Index. In the event of the executive's death, benefits may be transferred to designated beneficiaries. Key features include provisions for early retirement, death benefits, and a noncompetition clause to protect the corporation's interests. Successful filling and editing of this form require parties to insert specific details, including the corporation's name, employee details, payment amounts, and duration. This agreement is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who manage or advise on executive compensation, ensuring compliance with employment laws while securing financial arrangements for key employees. Additionally, legal professionals can guide clients through the nuances of the agreement, from drafting to enforcement, enhancing its overall effectiveness.

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FAQ

The regular yearly contributions amount for Deferred Compensation will increase from $23,000 to $23,500. The catch-up contribution limit that generally applies for employees aged 50 and over remains at $7,500 for 2025 for a combined maximum contribution limit of $31,000 in 2025.

Roth IRA is a great option because your contributions are accessable if you need to get to them unlike the 401k.

Retirement Benefits Retirement Plan participation is mandatory for all eligible employees who are covered by one of the Arizona state retirement plans. These are defined benefit plans in which the County and the employee contribute a certain percentage of the employee's salary.

From a high level, the sponsor of a 401(k) plan is the entity that establishes retirement plans for a company and its employees. Normally, the 401(k) plan sponsor is the employer itself, a union, or a selected employee of the firm.

401(k) plans and 403(b) plans offer very similar benefits. As such, one isn't really better than the other. The main difference is that each plan is offered to employees of different types of companies. Another key difference between the plans is that 403(b) plans also offer a $15,000 catch-up.

Deferred compensation is a written agreement between an employer and an employee where the employee voluntarily agrees to have part of their compensation withheld by the company, invested on their behalf, and given to them at some pre-specified point in the future.

Deferred compensation is often considered better than a 401(k) for highly-compensated executives looking to reduce their tax burden. Contribution limits on deferred compensation plans can also be much higher than 401(k) limits.