The Deferred Compensation Plan Agreement is a contract that states the arrangement of the employee’s income which is paid a lot later than the actual date of earning. This is a sort of deferred income plan which allows employees to gain benefits from retirement plans, pensions and company stock options. The main aim is to allow the employee to defer taxes to a date where the employee will receive an income.  This is part of the internal revenue code which allows the income tax department to defer taxes and distribute them later as income.

This arrangement is a profitable one since employees receive the income that they had earned at one point of time. It acts as a saving mechanism for those who are corporate executives or those at high posts in companies. This is a written agreement between the employee and the company where the employee allows the company to withhold certain portion of his or her income.

Deferred Compensation Plan Agreement

Deferred Compensation Plan Agreement


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