Defered Comp and Federal Income Tax

Submitted by NWLanding on Tue, 04/07/2015 - 20:12

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Deferred Compensation

Is Federal Income Tax calculated and applied for withdrawals from 457(b) retirement accounts? Are the annual withdrawals listed in the Total Income report table before tax?

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dan royer's picture

dan royer

Wed, 04/08/2015 - 10:00

When you enter dollar amounts

When you enter dollar amounts in the 401K area of the retirement input area in ESPlanner, yes, the program then taxes the amount being withdrawn from these kinds of accounts. If you enter dollars in the ROTH area of that same screen, then the program does not tax those withdrawals since ROTHs are not taxable when withdrawn like your 457 is. The annual withdrawals you see listed are the amounts, in today's dollars, that you should withdraw. The appropriate taxes on those withdraws are already included in the Taxes reports.

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NWLanding

Wed, 04/08/2015 - 11:58

Thank you for the great

Thank you for the great answer! Just what I hoped was occuring.

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