Voluntary Deferred Compensation Plans
A Deferred Compensation Plan permits you, on a voluntary basis, to authorize a portion of your salary to be withheld and invested for payment to you at a later date. These salary deferrals, or “contributions”, are allocated to the Plan’s investment choices at your instruction. Neither your contributions nor any investment earnings are subject to current federal and (in most cases) state income taxes. Taxes become payable when the deferred income plus earnings are distributed to you - generally at retirement, or separation from employment.