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  #11  
Old 06-04-2018, 01:52 PM
JoJo JoJo is offline
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Here's another big factor: what's the state income tax rate now & in the future? If you're eventually moving to a higher income tax state you lose some of the benefit.
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  #12  
Old 06-05-2018, 10:59 AM
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What is it deferred into (i.e. celalta's question)? Is it a qualified trust, a rabbi trust, or just "accounting"? From a tax perspective, what are you allowed to do with the lump sum payment? What is the impact on your ability to contribute to Roth accounts now on the income actually paid to you (i.e. does the reduction in current year income enable you to make (additional) contributions to a Roth IRA)?

If you are in a financial position to start worrying about these things it may be time to hire a qualified adviser (whether it be a CPA or financial adviser) who knows the answers to these types of questions, as well as other ways to minimize your taxes and maximize your income options.
From what I can tell, it's just "accounting" but with an account on your behalf that invests. The only benefit for me at this point would be the psychological component, plus perhaps being able to invest in my Roth again.

However, when I get the "lump sum", once again, no Roth. I don't think I'm retiring from this place (unless I'm here like 30 years, howboudah for a lump sum)
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  #13  
Old 06-05-2018, 12:43 PM
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I'm so glad nobody pointed out that I'm not an executive. lol
You're not?
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  #14  
Old 06-06-2018, 03:55 PM
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To be clear, in order to get the tax benefit from deferring your income, your money has to be at risk. If the company goes bankrupt, you would have to get in line with all the other creditors.
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  #15  
Old 06-07-2018, 10:40 AM
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You're not?
Only on the AO
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  #16  
Old 06-14-2018, 03:26 PM
Surfohio Surfohio is offline
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To be clear, in order to get the tax benefit from deferring your income, your money has to be at risk. If the company goes bankrupt, you would have to get in line with all the other creditors.
This is the only downside at my company. It is only offered to more senior management, but you are entitled to it if you leave the company for any reason, except as quoted above. HR people say "at retirement", but that is not really the case.
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