Deferred Compensation Plan Agreement

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Deferred Compensation Plan Agreement

A deferred compensation plan is a document which helps to acknowledge the case in which an employee or an owner of a company defers a certain sum of money or a small portion of their income until a specified date in the future. This means that deferred compensation plan states the various terms and conditions under which a person or party received a payment at a later stage.

A deferred compensation plan can also be defined as a type of an employee pension plan in which an employee voluntarily declines to receive a portion of his monthly salary so that he can save money for his retirement because these equal payments are not paid to him until retirement. The main objective of such a deferred compensation plan is to entitle the employee for a lower income tax. Similarly life insurance policies are also used to fund deferred compensation plans all across the globe.

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Deferred Compensation Plan Agreement

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