Get Ny Deferred Compensation Plan Change Form 2012

Deferred compensation plans are funded informally. There is essentially just a promise from the employer to pay the deferred funds, plus any investment earnings, to the employee at the time specified. In contrast, with a 401(k) a formally established account exists.

Closing Your Plan If the reason for closing out your plan is an unforeseen emergency, you can request a 457 Emergency Withdrawal Packet. You must fill out a form stating the nature of the emergency and how the funds will be used. You will be asked what percentage of withholding tax you prefer.

Unlike other retirement plans, under the IRC, 457 participants can withdraw funds before the age of 59½ as long as you either leave your employer or have a qualifying hardship. You can take money out of your 457 plan without penalty at any age, although you will have to pay income taxes on any money you withdraw.

Peter, with that much income, a deferred-compensation plan is definitely worth considering. On the positive side, a deferred-compensation plan could save you some tax dollars. ... Similar to pre-tax contributions to a 401(k), instead of receiving your full pay, you defer some of it.

Generally speaking, the tax treatment of deferred compensation is simple: Employees pay taxes on the money when they receive it, not necessarily when they earn it. ... The year you receive your deferred money, you'll be taxed on $200,000 in income 10 years' worth of $20,000 deferrals.

457 plan assets that remain in a 457 plan until paid to you are never subject to the 10% early withdrawal penalty tax. However, you can roll assets into your 457 plan from another type of retirement plan (401, 403(b), or Traditional IRA), and these assets may be subject to the 10% early withdrawal penalty tax.

Are distributions from a state deferred (section 457) compensation plan taxable by New York State? Yes. However, distributions received after the pensioner turned 59 1/2 would qualify for the private pension and annuity income exclusion of up to $20,000.

401(k) plans and 457 plans are both tax-advantaged retirement savings plans. 401(k) plans are offered by private employers, while 457 plans are offered by state and local governments and some nonprofits.

Peter, with that much income, a deferred-compensation plan is definitely worth considering. On the positive side, a deferred-compensation plan could save you some tax dollars. ... Similar to pre-tax contributions to a 401(k), instead of receiving your full pay, you defer some of it.

You pay federal and New York State income taxes on your contributions. ... All withdrawals are taxed as ordinary income. Distributions made prior to 59½ may be subject to a 10% penalty tax. Your money can stay tax-deferred in your account even when you separate from service or retire.