Philadelphia compensation lawyers at Sidney L. Gold & Associates formulate and negotiate deferred compensation plans in employment agreements and separation agreements to ensure that their clients deferred compensation is available to them according to the terms of the plan. Deferred compensation refers to non-taxed, interest-bearing income earned by an employee that is put into a separate account and distributed as income in the future. The deferred compensation program is available in two forms; qualified and non-qualified plans. Qualified plans include 401(k) plans and IRAs that are regulated by the Employee Retirement Income Security Act of 1974 (ERISA). Non-qualified deferred compensation plans are regulated by the Internal Revenue Code, 409A.
Employees in qualified deferred compensation plans cannot access this money until they reach the age of retirement. Doing so before retirement age results in hefty financial penalties for the worker. We arbitrate and litigate disputes that may arise in the future if the employer is non-compliant with the terms set forth in the agreement.