Deferred Compensation Plan To Ira In Arizona
Description
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FAQ
You may roll your Plan assets to other retirement plans such as qualified employer plans (401(k), 403(b), etc.) or an IRA, when you separate from service. Withholding taxes may apply if the rollover is not a direct rollover.
An employer also reports such amounts in box 12 of Form W-2 using code Z. See Q&A-33. A payer reports to a nonemployee the total amount of deferrals for the year under a nonqualified deferred compensation plan in box 15a of Form 1099-MISC.
If you roll your DCP funds directly over into a traditional IRA or eligible retirement plan, the funds won't be taxed until you withdraw them. If you roll over into a Roth account, the rules could be different. Check with the IRS to learn how this choice will impact you.
Qualified variable annuities, meaning financial products set up with pre-tax dollars, can be rolled over into a traditional IRA. Non-qualified variable annuities, meaning products set up with after-tax dollars, can't be rolled over into a traditional IRA.
Deferred tax liability is created only when the timing differences originate in the tax holiday period and reverse after the tax holiday. Adjustments are done on the basis of the FIFO method. Fully reversed after the tax holiday period. The total DTL balance at the end of the second year will be 126,000.
Deferred compensation is often considered better than a 401(k) for highly-compensated executives looking to reduce their tax burden. Contribution limits on deferred compensation plans can also be much higher than 401(k) limits.
A team of 17 regional Account Executives who offer local on-site educational programs to employees of participating employers. A team of HELPLINE Representatives located in Troy, New York that is available Monday through Friday 8am until 11pm and Saturday from 9am until 6pm.
The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.
The Deferred Compensation Committee manages the assets of the Deferred Compensation Plan. It is the intent of the Committee to fulfill its fiduciary responsibilities solely in the interest of the Plan's participants and beneficiaries and to make investments permissible by law for investment of trust funds.
As always, you can speak with a Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760.