Louisiana Deferred Comp For Dummies In Travis
Category:
State:
Multi-State
County:
Travis
Control #:
US-00418BG
Format:
Word;
Rich Text
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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.
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Plan (the "Plan") is eligible to be rolled over to an IRA or an employer plan. Use black or blue Ink when completing this form.Deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement) Follow the prompts to enroll.