The Basics
Advantages to Employees
Advantages to Employer
Disadvantages to Employer
Disadvantages To Employees
A. Current salary
is reduced by the deferred amount.
B. There is no
guarantee as to future benefits.
C. Investment
risks rest on the participant.
D. No special
lump-sum tax treatment of distributions.
E. There are no
forfeitures to be reallocated.
F. Life insurance
funding is not available.
G. Cannot contribute
over the $9,5001 limit for 1996.
The Basics
Advantages to
Employees
Advantages to
Employer
Disadvantages
to Employer
This document was last modified on July 27, 1999 by LMLeber
Copyright ©1999, The Jacobs Company, All Rights Reserved