The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: Quest4Fire on September 25, 2017, 01:10:39 PM
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We are still employed . My husband's employer offers something called a C AP plan. We are looking for feedback and any opinions regarding CAP plans.
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We are still employed . My husband's employer offers something called a C AP plan. We are looking for feedback and any opinions regarding CAP plans.
Have you read the Summary Plan Description, and could you summarize for the audience what it is?
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The summary plan description of the CAP plan is
Capitol accumulation plan is a non qualified deferred compensation plan. Designed to enable you to defer portions of your compensation into the future on a pretax basis. Allows you to accumulate earnings on your deferrals on a tax deferred basis. I.e. Not subject to income tax until distributed to you. It is subject to social security and Medicare taxes at the the time you defer them. Not a 401A
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See nqdc site:bogleheads.org - Google Search (https://www.google.com/search?sitesearch=bogleheads.org&q=nqdc) and nqdc site:forum.mrmoneymustache.com - Google Search (https://www.google.com/search?q=nqdc+site%3Aforum.mrmoneymustache.com&ie=utf-8&oe=utf-8) for various pros and cons.