Transfer Your Lump Sum Separation Pay to Your Savings Plus 401(k) and 457 Accounts

Do you plan to retire before the end of the year? Do you have unused leave credit? Normally, when you retire you receive a lump sum payment for the value of your unused leave. Did you know you can defer this payment - and the associated tax - by transferring your lump sum payment to a Savings Plus 401(k) or 457 account? You'll avoid paying taxes on it until you withdraw the funds.

Retire this year - defer your lump sum payment into the next year

If you separate or retire between November 1, and December 31, you can transfer up to the maximum contribution limit for the current tax year and for the following tax year. This may help you avoid a large tax bill.

Take advantage of this tax benefit - see how it can work for you

Download the Lump-Sum Separation Pay Transfer form (also available on the Savings Plus website under "forms and publications"). Submit the completed form to your employer at least thirty calendar days before your final day of employment.

For information about lump sum separation pay, call a customer service representative at (866) 566-4777 (press * 0) Monday- Friday from 5:00 a.m. to 8:00 p.m. (PT).

Lump Sum Separation training video

Savings Plus offers a Lump Sum Separation Pay training video for employees, to help you understand this valuable benefit. Additional training videos are also available on this website under Savings Plus Videos.

If you have questions about the video, contact the Training and Consulting Unit.

Updated January 4, 2012 at 1:25 PM.