Delete Words in the Deferred Compensation Plan

Aug 6th, 2022
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How to Delete Words in the Deferred Compensation Plan

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and were back all right back with another one so today were going to be talking about 457bs now heres the thing i know that despite the high value and the extreme importance of the information that were going to be going over today i know despite all that cops really have a hard time sitting through training and presentations especially if im just saying here spitting out numbers and facts at you right so in exchange for a quick smash of that like button and a quick little click of that subscribe button i have before the video even starts a quick 15 second synopsis of all the high points that you need to know for 457bs so that you can just go on about your day all right so first things first hit the like button and subscribe please it helps out the channel tremendously so quick 15 second rundown 457bs guess what theyre important second thing its not quick money all right its slow and thats okay its not like winning the lottery all right it takes discipline but guess what with

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If you take your deferred compensation payments over a period of 10 years or more, those payments will be taxed in the state where you reside, rather than in the state in which you earned the compensation, possibly reducing your state income taxes.
457(b) Assets can be withdrawn without penalty at any age upon separation from service from the plan sponsor, or age 70 if still working.
If you take your deferred compensation payments over a period of 10 years or more, those payments will be taxed in the state where you reside, rather than in the state in which you earned the compensation, possibly reducing your state income taxes.
You have to decide how much income to defer prior to the beginning of the compensation performance period (usually 12 to 24 months before you receive it)and you generally cant change your mind midyear if your circumstances change.
Unlike a 401(k), your deferred compensation account is not yours; it is the property of your employer and is subject to potential loss. If the company goes bankrupt or cannot pay its bills, you may lose the compensation you deferred.
If you have a qualified plan and have passed the vesting period, your deferred compensation is yours, even if you quit with no notice on very bad terms. If you have a non-qualified plan, you may have to forfeit all of your deferred compensation by quitting depending on your plans specific terms.
One potential exception is performance based compensation (PBC). If a deferral qualifies as PBC under Section 409A rules, deferral elections can be changed or cancelled as long as that change occurs with at least six months remaining in the performance period.
If approved, you can receive up to the full amount of your 457 account balance. There is no tax penalty for this early withdrawal and the entire withdrawal is taxed as ordinary income. Your decisions regarding an unforeseeable emergency withdrawal will have financial consequences as well as income tax implications.

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