Retirement
I am a retire chicago police officer and have my deferred comp with nationwide thru work. Should I keep there or think about looking into a Roth.
Terry Says
I’m not sure whether your deferred comp is considered “qualified retirement income” in the sense that is a “retirement plan.” That makes a difference. Check with the plan administrator to see if the deferred comp is ELIGIBLE to be “rolled over” into a rollover IRA. That’s the first step.
Why would you do that if eligible? YOu might different/better or lower cost investment choices, which you could get at Fidelity or Vanguard.
And at the time of the rollover — if it is allowed — you could pay the taxes and convert PART of the amount into a Roth.
But you can’t contribute to a new ROTH based on receiving your deferred comp. It does not qualify as “earned income” for that purpose.
