Deferred comp
Hello Terry, My husband has paid out of his paycheck for 38 years deferred comp. He turned 70 years old back in March of this year. Should we as retirees take that money out and invest in a home or will we be taxed on that money if left in until we do invest… or what would be the best thing to do during this time in our life in your opinion? Thanks,
Terry Says
Whew, you need to know the exact terms of this deferred comp plan — Most plans require the deferral to be taken out, either in a lump sum or in a series of payments at retirement. I have no idea the terms/requirements of this plan. Could you ask the employer and write back to me? For sure, you will pay ordinary income taxes on this money — and it will likely impact your Medicare Part B premiums, depending on the amount/timing of the withdrawal, so this requires some careful planning.
