The North Carolina Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees provides a comprehensive framework for key employees to defer a portion of their compensation for future benefits. This agreement is specifically designed to meet the needs of employees residing in North Carolina and allows them to effectively plan for their financial future. First Florida Bank, Inc. offers different types of Deferred Compensation Agreements tailored to suit the diverse needs of key employees. The two primary types include: 1. Defined Contribution Plan: This type of agreement allows employees to contribute a portion of their pre-tax income towards their retirement savings. Contributions made by employees are deducted from their paycheck before taxes are applied. The funds are then invested in various investment options selected by the employee, such as stocks, bonds, or mutual funds. The account grows tax-deferred until the employee chooses to withdraw the funds in retirement. 2. Defined Benefit Plan: This agreement is designed to provide a guaranteed retirement benefit to key employees based on a formula considering factors like salary, years of service, and a predetermined percentage. The employer bears the investment risk and promises to pay a specific benefit amount to the employee upon retirement. This type of plan offers employees a predictable retirement income, helping them plan their financial future with more certainty. The North Carolina Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees provides several key benefits to participants. These benefits include: 1. Tax Advantages: Both types of agreements offer tax advantages, allowing employees to reduce their current taxable income by deferring a percentage of their compensation. The taxes on the deferred income are typically paid at a later date when the funds are withdrawn, usually during retirement when the employee may be in a lower tax bracket. 2. Retirement Savings: By participating in this agreement, key employees can effectively save for their retirement while enjoying potential investment growth over time. The defined contribution plan allows employees to actively manage their investments, while the defined benefit plan offers a predetermined benefit amount. 3. Employer Contributions: First Florida Bank, Inc. may also offer matching or discretionary contributions to enhance employee retirement savings. These additional contributions serve as an incentive for employees to participate actively in the plan and further increase their retirement funds. 4. Flexibility: The agreement provides flexibility to employees regarding their investment choices, contribution amounts, and vesting schedules. Key employees can tailor their deferred compensation plan to suit their specific financial goals and risk tolerance. It is worth noting that the terms and conditions, as well as the specific benefits, may vary depending on the individual's position, compensation level, and length of service with First Florida Bank, Inc. The North Carolina Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees aims to support employees in building a solid financial foundation for their retirement years while offering them flexibility, tax advantages, and the potential for growth.
North Carolina Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees
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Key Takeaways. Deferred compensation plans allow employees to withhold a certain amount of their salaries or wages for a specific purpose. Deferred compensation plans can be qualified or non-qualified. Qualified plans fall under the Employee Retirement Income Security Act and include 401(k)s and 403(b)s.
A 457(b) plan's annual contributions and other additions (excluding earnings) to a participant's account cannot exceed the lesser of: 100% of the participant's includible compensation, or. the elective deferral limit ($22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and in 2021).
The NC 457 Plan is a deferred compensation plan available exclusively to those North Carolina public employees whose employers offer the Plan. This includes full-time, part-time and temporary employees.
You can take out small or large sums anytime, or you can set up automatic, periodic payments. If your plan allows it, you may be able to have direct deposit which allows for fast transfer of funds. Unlike a check, direct deposit typically doesn't include a hold on the funds from your account.
The Florida Deferred Compensation Plan is a supplemental retirement plan for employees of the State of Florida, including OPS employees and employees of the State University System, State Board of Administration, Division of Rehab and Liquidation, Special Districts*, and Water Management Districts* [established under ...
Deferred compensation plans are an incentive that employers use to hold onto key employees. Deferred compensation can be structured as either qualified or non-qualified under federal regulations. Some deferred compensation is made available only to top executives.
Key Differences Deferred compensation plans tend to offer better investment options than most 401(k) plans, but are at a disadvantage regarding liquidity. Typically, deferred compensation funds cannot be accessed, for any reason, before the specified distribution date.
The NC 457 Plan is an eligible defined contribution plan under Section 457(b) of the Internal Revenue Code. The NC 401(k) Plan and the NC 457 Plan are single plans that are sponsored by the State of North Carolina and that have over 1,100 participating employers.