Deferred Compensation Agreement (7 Pages)
This is a Form of a Deferred Compensation Agreement. It is not unusual that owners of a closely-held business or their key employees have received reduced salaries in the early start-up years of the operation of the business. A Deferred Compensation Agreement is a way to compensate such persons in addition to any retirement plan benefits (which may be modest) to which they are entitled.
This is a Form of a Deferred Compensation Agreement. It is not unusual that owners of a closely-held business or their key employees have received reduced salaries in the early start-up years of the operation of the business. A Deferred Compensation Agreement is a way to compensate such persons in addition to any retirement plan benefits (which may be modest) to which they are entitled. This is a non-qualified form of deferred compensation, meaning that it is not being made available to all of the employees of the Company.
As written, this Agreement provides for a payment of deferred compensation to the Employee for a period of years following his retirement, death or disability. If his spouse survives him, the payment continues to the spouse. However, the payment does not continue to his further heirs, or to his estate. If a more generous succession payout is desired (to heirs or to the Employee’s estate) that can certainly be provided by revising this Form accordingly.
Author:
Steven G. Siegel is president of The Siegel Group, a Morristown, New Jersey - based national consulting firm specializing in tax consulting, estate planning and advising family business owners and entrepreneurs. Mr. Siegel holds a BS from Georgetown University, a JD from Harvard Law School and an LLM in Taxation from New York University.
He is the author of several books, including: Planning for An Aging Population; Business Entities: Start to Finish; Taxation of Divorce and Separation; Income Taxation of Estates and Trusts, Preparing the Audit-Proof Federal Estate Tax Return, Putting It Together: Planning Estates for $5 million and Less, Family Business Succession Planning, Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts; The Federal Gift Tax: A Comprehensive Analysis; Charitable Remainder Trusts, Grantor Trust Planning: QPRTs, GRATs and SCINs, The Estate Planning Course, The Retirement Planning Course, Retirement Distributions: Estate and Tax Planning Strategies; The Estate Administration Course, Tax Strategies for Closely-Held Businesses, and Tort Litigation Settlements: Tax and Financial Issues.
Mr. Siegel has lectured extensively throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including National Law Foundation, AICPA, CCH, National Tax Institute, National Society of Accountants, and many others. He has served as an adjunct professor of law at Seton Hall and Rutgers University law schools.
The Siegel Group provides consulting services to accountants, attorneys, financial planners and life insurance professionals to assist them with the tax, estate and business planning and compliance issues confronting their clients. Based in Morristown, New Jersey, the Group has provided services throughout the United States. The Siegel Group does not sell any products. It is an entirely fee-based organization.
Contact the Siegel Group through its president, Steven G. Siegel, e-mail: [email protected].