Sentences with phrase «employee is in a higher tax bracket»
If the employee is in a higher tax bracket during retirement than he is when he is putting money in the Roth 401 (k), the plan allows him to pay a lower tax rate than he would in a regular 401 (k)-- since withdrawals during retirement are tax free.
http://www.wikinvest.com/ Not exact matches
The deferred compensation plan is a contractual arrangement whereby a key employee, usually in a high - income tax bracket, will receive a guaranteed number of fixed payments, beginning at retirement, in place of current salary increases or cash bonuses.