No taxes are paid on the account until you begin withdrawing funds. The Deferred Compensation Plan is a Section 457 Retirement Program, commonlyreferred to a supplemental retirement annuity. This plan provides employeeswith the opportunity to invest money on a before tax basis, using payrolldeduction. Because your taxable income is reduced, you can invest moneyand defer taxes. The before tax aspect is what makes Deferred CompensationPlan very attractive.
Participants defer federal and state income tax ontheir contributions.
In addition, interest or earnings on your accountaccumulates tax-deferred. No taxes are paid on the account until you beginwithdrawing funds. Any amounts deferredunder a 403B plan are to be treated as amounts deferred under this deferredcompensation plan. Great West Lifeand Annuity Insurance Company is the plan administrator for Louisiana PublicEmployees Deferred Compensation Plan. This is a supplemental retirement plan which provides employees with theopportunity to invest money on a before tax basis, using payroll deduction.