How much is the Fedex Cup Payout? It's a whooping $10,000,000 for the four-tournament playoff. But this will go to the winner's deferred-compensation Tour retirement account. The winner will only have access to it when he reaches the age of 45.
Here is more information about the Fedex Cup payout Sports.espn.com :
This system will create a lot of cash for players down the road. It has erroneously been reported that the payout is in the form of an annuity. It is not an annuity. Sometime after the Tour Championship, the winner of the FedEx Cup will have $10 million placed in his tour-based retirement account. That's tax free. And the money can be invested in as many as 15 different options.
Players cannot touch the money, of course, until the age of 45 or when they stop playing the tour, whichever comes later. They must start taking payments by age 60. But if you do the math, you can see just how lucrative the plan can be. In Woods' case, if he wins the $10 million, draws an annual rate of return of 8 percent and cashes in at age 45, he would have more than $29 million sitting in his account.
Labels: Fedex Cup Payout
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