deferred comp from previous employer
Client had a NQ deferred comp from previous employer.
They let him go in June of last year 2019.
They sent a check to him for $10,800 now.
a. His HR person from previous employer stated you can’t roll this over so we sent you a check, is this correct?
or…
b. Can he transfer this to a NQ annuity to avoid taxes?
Thank you.
Douglas
Permalink Submitted by Alan - IRA critic on Wed, 2020-03-18 18:43
HR is correct. These plans are not eligible for rollover or exchange into an annuity. Client will owe the taxes, but no early distribution penalty.