Deferred Compensation Plan To Ira In King
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The average employee salary for King County, Washington in 2022 was $93,669. This is 30.6 percent higher than the national average for government employees and 29.1 percent higher than other counties. There are 55,913 employee records for King County, Washington.
The County offers its employees several opportunities to save for the future, including a pension through the Washington State Department of Retirement Systems, a voluntary Deferred Compensation Plan, an HRA VEBA account, and Social Security benefit contributions.
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.
You need 5 or more years of service to qualify for a retirement with PERS Plan 2. Full retirement age is 65. You can also choose to retire as early as age 55, but your benefit could be reduced depending on your total years of service.
How many state and local pension plans are there? State and local governments sponsored more than 4,000 pension plans in 2022. Over 34 million members participate in these plans, including active public employees, former public employees who have earned benefits that they are not yet collecting, and current retirees.
Unless you'll be in a much lower tax bracket this year than you will be in the (near) future, it doesn't normally make sense to convert traditional contributions to Roth.
Disadvantages of rolling over to an IRA In case of bankruptcy: If you roll over your funds into an IRA, you lose the level of legal protection against creditors that a 401(k) offers. In a 401(k), your retirement funds are protected from all forms of creditor judgments.
Assets in a 457(b) plan can be rolled over into most other retirement accounts, including into a traditional IRA, a Roth IRA, another 457(b) plan, a 403(b), a 401(a) or a 401(k) plan.