Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees
Overview of this form
The Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees is a legal document that allows selected employees to defer a portion of their compensation under the First Florida Banks, Inc. Book Value Phantom Stock Plan. This form outlines the terms of deferral, including the investment options for the deferred amounts and the conditions for their distribution. It differs from other compensation agreements by focusing specifically on key employees and phantom stock awards, providing them with a structured way to manage their compensation over time.
Key parts of this document
- Effective Date: Agreement becomes effective upon board approval of the phantom stock plan.
- Administration: The Phantom Stock Plan Committee administers the agreement and interprets its provisions.
- Participants: Eligibility is limited to employees designated by the committee who participate in the phantom stock plan.
- Timing of Election: Employees must elect to defer awards on the day phantom shares are granted.
- Investment Options: Employees can choose between investing in company stock or an interest-bearing account for deferred amounts.
- Distribution Terms: Specifies how and when deferred compensation is distributed upon employee termination, retirement, disability, or death.
Situations where this form applies
This Deferred Compensation Agreement should be used when eligible key employees at First Florida Bank, Inc. wish to defer a portion of their phantom stock awards to a later date. This is beneficial for employees who want to manage their tax liabilities in the current year or plan for their future financial needs while remaining in compliance with the bank's compensation policies.
Who should use this form
The following individuals should consider using this form:
- Key employees of First Florida Bank, Inc. eligible for participation in the Phantom Stock Plan.
- Employees seeking to defer part of their compensation awards for tax management or personal financial planning.
- Those looking for options to invest deferred amounts while complying with corporate directives.
Completing this form step by step
- Identify the parties involved: the employee and First Florida Bank, Inc.
- Review the terms and conditions outlined in the agreement to understand your deferral options.
- Make a written election on the day phantom shares are granted, indicating the percentage to defer.
- Choose an investment option for the deferred amounts from the provided options.
- Submit the completed agreement to the Phantom Stock Plan Committee for acknowledgment.
Does this form need to be notarized?
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to elect to defer on the day phantom shares are granted.
- Not properly understanding the investment options for deferred amounts.
- Overlooking the specific eligibility criteria required for participants.
- Neglecting to submit the written election to the committee in a timely manner.
Benefits of completing this form online
- Quick access to the form, saving time compared to traditional methods.
- Easy editing options allow users to customize the agreement as needed.
- Improved reliability through standardized legal language provided by licensed attorneys.
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FAQ
A deferred compensation plan withholds a portion of an employee's pay until a specified date, usually retirement. The lump-sum owed to an employee in this type of plan is paid out on that date. Examples of deferred compensation plans include pensions, retirement plans, and employee stock options.
Deferred compensation plans are funded informally. There is essentially just a promise from the employer to pay the deferred funds, plus any investment earnings, to the employee at the time specified. In contrast, with a 401(k) a formally established account exists.
More In Retirement Plans 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 ($19,500 in 2020 and in 2021).
The 457(b) deferred compensation plan is a retirement plan offered by the State of Florida, created to allow public employees like you to put aside money from each paycheck toward retirement.Here are some frequently asked questions about deferred comp plans: What sets a 457(b) apart from other retirement plans?
The amount you can defer (including pre-tax and Roth contributions) to all your plans (not including 457(b) plans) is $19,500 in 2020 and in 2021 ($19,000 in 2019).
Money saved in a 457 plan is designed for retirement, but unlike 401(k) and 403(b) plans, you can take a withdrawal from the 457 without penalty before you are 59 and a half years old.There is no penalty for an early withdrawal, but be prepared to pay income tax on any money you withdraw from a 457 plan (at any age).
Examples of deferred compensation include retirement, pension, deferred savings and stock-option plans offered by employers. In many cases, you do not pay any taxes on the deferred income until you receive it as payment. Deferred compensation plans come in two types qualified and non-qualified.
If your deferred compensation comes as a lump sum, one way to mitigate the tax impact is to "bunch" other tax deductions in the year you receive the money. "Taxpayers often have some flexibility on when they can pay certain deductible expenses, such as charitable contributions or real estate taxes," Walters says.
You can take the distribution in a lump sum or regular installments, paying tax when you receive the income. You can also arrange to withdraw some of it when you anticipate a need, such as paying for your kids' college tuition. While the IRS has few restrictions, your employer will probably have their own rules.
