Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees
The Deferred Compensation Agreement by First Florida Bank, Inc. for Key Employees is a legal document that allows designated key employees to defer a portion of their compensation under the companyâs Book Value Phantom Stock Plan. This form is essential for employees looking to manage their taxable income and benefit from future compensation without immediate tax implications. Unlike standard employment agreements, this document specifically deals with deferred compensation and the terms associated with it.
- Effective date: The agreement becomes effective upon adoption by the Board of Directors.
- Administration: Managed by the Phantom Stock Plan Committee, ensuring proper execution of the agreement.
- Participants: Only employees selected by the Committee who are part of the Phantom Stock Plan may participate.
- Timing of election: Employees must decide on the amount to defer at the time of Phantom Shares grant.
- Earnings on deferred amounts: Employees can choose to invest deferred amounts in company stock or an interest-bearing account.
- Distribution conditions: Details on how and when deferred compensation is distributed based on employment status.
This form should be used when key employees of First Florida Bank, Inc. wish to defer some of their compensation as part of the Book Value Phantom Stock Plan. It is particularly relevant during situations where employees want to manage their tax liabilities, plan for retirement, or ensure their financial goals align with the company's compensation structure.
Eligibility for this agreement includes the following:
- Key employees of First Florida Bank, Inc. who receive Phantom Shares.
- Employees selected by the Phantom Stock Plan Committee.
To complete this form, follow these steps:
- Determine your eligibility as a key employee under the Phantom Stock Plan.
- Decide the percentage of Phantom Share awards you wish to defer (choices include 25, 50, 75, or 100 percent).
- Complete the written election form provided with the agreement on the date Phantom Shares are granted.
- Submit the completed election to the Phantom Stock Plan Committee.
- Choose your investment option for the Deferred Compensation Account when the Phantom Shares are exercised.
Does this document require notarization?
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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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.
- Failing to submit the deferral election on the same day Phantom Shares are granted.
- Not clearly designating the percentage to defer on the election form.
- Misunderstanding the investment options for the deferred amounts.
- Convenience of online access and download for immediate use.
- Editability allowing customization of the agreement to fit your specific needs.
- Reliability of forms drafted by licensed attorneys with expertise in compensation agreements.
- The agreement is a legally binding document that outlines the terms of deferred compensation.
- It provides guidelines on the rights and obligations of both the employee and the employer.
- It's essential to follow the terms closely to ensure enforceability and compliance with tax regulations.
- The Deferred Compensation Agreement allows for tax deferrals on certain compensation.
- Employees must elect to defer at the time of Phantom Shares grant.
- Clear guidelines exist for how and when deferred amounts are distributed.
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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.
