What is eligible deferred compensation?

An eligible deferred compensation plan under Section 457 (b) of the IRC is an agreement or agreement (which may be an individual employment agreement) whereby the payment of compensation is deferred (either through a wage reduction or through a non-elective contribution from the employer). A qualified deferred compensation plan complies with the Employee Retirement Income Security Act (ERISA) and includes 401 (k) and 403 (b) plans, as well as Gold Roth IRA accounts. They must have contribution limits and be non-discriminatory, open to any employee of the company and benefit everyone. They are also more secure and are held in a trust account.