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Impact of Deferred Compensation
(Posted February 14, 1999)
Question 17: I plan to retire in October 1999. I have 21 years of Rail Work and 25 years of Social Security coverage. I have some deferred compensation coming which can all be paid in 2000 or split and paid in equal amounts in 2000 & 2001. Will payment of my deferred compansation affect either my Railroad Retirement or Social Security payments?
Answer: You should consult with both the Railroad Retirement Board & the Social Security Administration to see how they will treat the payments. Post-reirement earnings will raise "Red Flags" with both agencies so it's best to get advise before payment & posting on the most advantageous treatment. For your information, both Railroad Retirement & Social Security have post-retirement earnings limits, so it's best to find out while you still have flexibility in directing your deferred compensation payments before payment and reporting.
Robert S. Kaufman
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