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Can I rollover a nonqualified deferred compensation account

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upon retirement without tax consequences?...
Can I rollover a nonqualified deferred compensation account upon retirement without tax consequences?
Submitted: 6 years ago.Category: Tax
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Answered in 34 minutes by:
4/1/2011
Tax Professional: Robin D., Senior Tax Advisor 4 replied 6 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,251
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Hello and thank you for using Just Answer.

Non-qualified also means that you can't rollover to an traditional IRA to keep the tax deferred status. There will be no penalty although the distribution will be taxed to you as ordinary income. Since you will have already paid tax on the distribution, your best bet would probably be to contribute to a Roth IRA in the year you still have wages. The only requirement or eligibility rule for contributing to a Roth IRA is that you have been paid some kind of compensation. This can be in the form of wages, salaries, tips, professional fees, and even bonuses.If your modified adjusted gross income exceeds these limits, then you are no longer eligible to contribute to a Roth IRA. You cannot contribute more than $5000 but at least it gives you an option.
I sincerely XXXXX XXXXX information is helpful to you,

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Customer reply replied 6 years ago
If modified gross income exceeds what limits?
Tax Professional: Robin D., Senior Tax Advisor 4 replied 6 years ago

 

Your filing status defines the amount you can make and be able to contribute anything.

  • Single filers with modified adjusted gross income up to $105,000 can make a full contribution. If your adjusted gross income is in excess of $120,000, then you cannot make a contribution to a Roth IRA.
  • Joint filers with modified adjusted gross income up to $167,000 can make a full contribution. If your adjusted gross income is in excess of $177,000, then you cannot make a contribution to a Roth IRA in 2010.
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