How is the Deferred Compensation Plan different from an IRA?
The Deferred Compensation Plan • Offers the convenience of payroll deductions, which can keep you disciplined when it comes to saving for retirement. • May allow you to defer larger amounts of money (up to $16,500 in 2010). Your right to use the Plan is not limited by any income level that is imposed for IRAs. • If separated from service, does not incur a 10% tax penalty for distributions taken before age 59½.
Related Questions
- If I am receiving distributions from my New York State Deferred Compensation Plan account and an IRA, can I deduct $40,000 (if at least $20,000 is received from each account)?
- Which is a better savings tool, the Deferred Compensation Plan or an IRA?
- How is the Deferred Compensation Plan different from an IRA?
