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A savings plan or account that is registered with the government and provides deferral of tax obligations. Tax-deferred savings plans may defer taxable income earned within the account either until withdrawal or until a particular date. They are used most commonly in retirement savings accounts such as IRAs, 401(k)s and RRSPs, but are also available for education savings plans and other accounts.
What Is a Deferred Compensation Plan?. In 2004 Congress enacted section 409A of the Internal Revenue Code, which changed the way some deferred compensation is taxed. At the end of 2010 the new law came into full effect. Though much deferred compensation is not affected by the law, its purpose was to raise the tax rate on deferred compensation that...
Commonwealth of Virginia 457 Deferred Compensation Plan