No. of Recommendations: 0
Hope someone can help with this...Pixy?

I am a state employee covered by a deferred compensation plan. I understand that it is not a qualified retirement plan. I may be leaving government employment soon and am trying to figure out what to do with those def. comp funds. Since it is not a qualified retirement plan, I understand that I can't roll it over into an IRA. So, are my only choices then to leave it where it is (poor mutual fund choices, no index fund, etc.) or take the money and pay (GULP) the taxes? Assuming that I do take the money, since I am also covered by a traditional pension, I can't contribute to a traditional IRA, income limits are too high for a Roth, so is my only choice to take 2000 and put in a non-deductible IRA and eat the taxes on the entire amount?

I'd appreciate your comments.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.