Kansas Deferred Compensation Agreement - Long Form

State:
Multi-State
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.
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FAQ

KPERS 457 Roth is available to all State employees. Each local employer decides for itself, so check with your human resources office. Why might you want to save with the Roth after-tax option? It primarily comes down to taxes.

A Roth 457 is not a Roth IRA. Neither is a Roth 457 a separate plan; it is simply a way for employees to control the taxation of their deferred wages when they are disbursed in the future. This option allows employees to elect after tax salary deferrals into a Roth option.

KPERS 457 is the State of Kansas deferred compensation plan. It's a voluntary savings plan for all state employees and some local employees.

Eligibility at all income levels - Unlike Roth IRAs, everyone with earned income is eligible to make Roth contributions to their employer's 457 plan.

KPERS is a qualified 401(a) defined benefit pension plan under the Internal Revenue Code. This type of plan is not permitted to allow "in-service" distributions.

KPERS 457 is the State of Kansas Public Employees 457(b) Deferred Compensation Plan. It is a retirement savings plan to help Kansas public employees complement their KPERS or KP&F pension for a more sound retirement income strategy.

KPERS lump-sum benefits, including earnings, generally keep their Kansas state tax-exempt status, even when rolled over into a qualified IRA containing other retirement funds. For more information about Kansas state taxes, please con- tact the Kansas Department of Revenue or a qualified tax preparer.

A deferred compensation plan is another name for a 457(b) retirement plan, or 457 plan for short. Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations. The content on this page focuses only on governmental 457(b) retirement plans.

Only Plan administrator-approved balances from an eligible governmental 457(b), 401(k), 403(b) or 401(a) plan (both Roth and pre-tax) or a traditional Individual Retirement Account (IRA) may be rolled over to the KPERS 457 Plan.

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Kansas Deferred Compensation Agreement - Long Form