Insurance Broker and Employee Benefits in Massachusetts

HOME   |   CONTACT

Deferred Compensation

Deferred compensation is a means to provide certain key employees with additional retirement benefits.

The business owner or key employee enters into a legal agreement with the company that will provide benefits at retirement, death, or disability, as long as they stay with the company.

The company sets aside money in either an insurance or an investment contract. The company owns the product, pays for it, and is the beneficiary.

Contributions to a deferred compensation program are not considered current income to the employee/owner. They are not currently deductible to the business. However, they become deductible when paid out and are taxable as regular income to the employee/owner at that time.

The investment is considered to be a business asset.

CLICK HERE FOR
HR ON CALL

Contact us today for a
FREE, no obligation consultation and quote at 781.934.0648.

Or, complete the form, and one of our knowledgeable Insurance Brokers will contact you shortly: