Slide side in the Deferred Compensation Plan

Aug 6th, 2022
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How to slide side in the Deferred Compensation Plan

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if you have a 457b retirement plan through work then youve got something special on your hands and in this video Im going to explain how the 457b retirement plan compares to a 401k individual retirement account or other common retirement savings options and then were going to talk a little bit about how to make the best use of this account type as you prepare for your retirement [Music] welcome my name is Eric amsilog I am the owner and head financial planner at Peak financial planning thank you for taking the time to watch this video were a fee only fiduciary financial planning practice located in Southern California and we help people make better money decisions and find peace with their finances so stay tuned were going to be talking all about the 457b and how you can use that to its maximum effect in your retirement planning so a 457b is a tax advantage retirement savings plan and in many ways its very similar to more common things like the 401K plan or even a tsp or a 403b p

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You should contribute as much as you can afford to put away for retirement, because every extra dollar you save will have an enormous impact over the long term. Say you are 30 years old and contribute $100 biweekly into your account. At age 60, if you earned 8% on your investment, you would have $306,620. Your Deferred Compensation Plan - A Great Savings Investment Tool ca457.com storage docs ca457.com storage docs
While you are employed, your employer may permit you to take a withdrawal from your 457(b) plan due to an unforeseeable emergency. All unforeseeable emergency withdrawal requests will be reviewed in ance with the plans procedures for a determination as to whether the withdrawal is permitted.
You can request a loan by logging in to your DCP account, completing a Loan Application Form, or calling the Service Center at 844-523-2457.
The plans carry some inherent risk for the employees in that the deferred payments are unsecured and not guaranteed. So if the organization faces bankruptcy and creditor claims, the employees may not receive their promised funds. (In contrast, qualified plans such as 401(k)s are protected from bankruptcy creditors). The pros and cons of nonqualified deferred compensation | Voya.com voya.com voya-insights pros-and-cons-n voya.com voya-insights pros-and-cons-n
A deferred compensation plan withholds a portion of an employees 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, 401(k) retirement plans, and employee stock options. Benefits of Deferred Compensation Plans - Investopedia investopedia.com articles personal-finance investopedia.com articles personal-finance
Installment plans can reduce tax bite If you get your deferred money in a single lump sum, it could push you into a much higher tax bracket for that year. As a result, youll likely pay more of your deferred compensation in taxes than you would if you had received the money in installments over five, 10 or more years.
Flexible payout options. Withdrawals are an important element of your account to understand. You can take out small or large sums anytime, or you can set up automatic, periodic payments.
Unlike a 401(k), there are few legal restrictions on when you withdraw deferred compensation or how long you must wait to withdraw it. Employers, however, impose restrictions to keep you with the company: If you quit or get fired, you lose some of the money. Rules That Apply to Deferred Compensation Withdrawals chron.com rules-apply-deferred-c chron.com rules-apply-deferred-c

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