The deferral of an employee's compensation to some future age or date. The employee accepts a promise to receive payment at a later date (such as at retirement or in the form of a death benefit paid to a beneficiary) for work performed currently. A plan of deferred compensation is frequently used to provide fringe benefits to selected personnel. When arranged in accordance with IRS requirements, it benefits the key employee because the money is not taxed until the later date, usually upon retirement, when income is reduced and the deferred funds will then be taxed at a lower rate.
In business, an arrangement whereby present salary or future raises are not taken currently, but are postponed until some future date, such as at retirement. Life insurance can be used to fund the plan, which pays retirement benefits to the employee and/or a death benefit to the employee's beneficiaries.
An arrangement under which an employee may receive part of a year's pay in a later year and to not be taxed on the deferred portion in the year the money was earned.
Dollars contributed to a tax favored retirement savings program from gross earnings on a tax-deferred basis.
A contractual agreement between an organization and an employee wherein the organization makes an unsecured promise to defer the compensation of the employee to some future date for services currently performed by the employee.
Compensation earned by an individual, the receipt of which is postponed until a later date, usually upon termination of employment or retirement. Typically, the deferred amounts are invested on the recipient's behalf and may be supplemented by contributions by the company. If the compensation arrangement meets certain requirements, an individual may not pay income taxes on the compensation until he or she receives a distribution of some or all of the deferred amounts.
An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.
the portion of a participantâ€(tm)s total compensation, which has been contributed to a plan.
Money to be paid from funds that, for a writer, are generally the net profits. Rarely will the writer ever see such compensation.
Earnings that an employer deducts from an employee's earnings and places in a qualified retirement plan, such as a 401(k). The money is distributed at a future date, usually at retirement, because of IRS rules. The money is not taxed until the employee receives the distribution from the plan.
compensation an employee elects to have contributed to a deferred compensation plan rather than receiving it as pay. Such a plan typically defers income tax on the deferred compensation until the employee withdraws it from the plan.
The portion of the participant's total compensation which has been contributed to the plan.
The part of your income that you choose to have withheld by your employer and put into a retirement plan for distribution to you at a later date, typically upon retirement. Generally, this compensation is not taxed until you receive it.
Arrangement through which the compensation to the employee for past or current services is postponed until some future date.
In general, the postponement of a wage payment to a future date. Usually describes a portion of wages set aside by an employer for an employee and put into a retirement plan on a pretax basis.
A nonqualified retirement plan which provides an employee the option to forego current compensation for payments during retirement.
The amount your employer deducts from your pay and puts into a qualified retirement plan, for you to collect at a later date, usually when you retire. You do not pay tax on qualified deferred compensation until you receive the payout.
An arrangement that allows an employee to receive part of a year's pay in a later year and not be taxed in the year the money was earned.
Compensation that will be taxed when received or upon the removal of certain restrictions on receipt and not when earned. For example, contributions by an employer to a qualified pension or profit-sharing plan on behalf of an employee is considered deferred compensation. Such contributions will not be taxed to the employee until the funds are made available or distributed to the employee, usually upon retirement.
A contractual commitment by an employer to an employee to pay compensation in a future tax year.
In general, the post ponement of a compemsation payment to a future date. Usually a portion of wages set aside by an employer for an employee's account in a retirement plan on a pretax basis.
Employees often earn compensation that will be paid in the future. As long as the employee is working and meeting expressed conditions, the employee earns these future benefits. The benefit can include sick leave, vacation time, and retirement benefits.
Arrangements by which compensation to employees for past or current services is postponed until some future date.
The deferral of constructive receipt of current earned income or compensation to a later date, usually retirement, so future receipt might experience a potentially lower marginal tax rate.
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned. Examples of deferred compensation include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation is the deferral of tax.