NYC Deferred Comp participants should get a second opinion regarding “advice” from NYC Deferred Comp representatives. Recently, a client called Thomann Tax and asked which NYC Deferred Comp retirement plan should he take a large distribution from. The client had two retirement plans to choose from. Thomann Tax instructed the client which retirement plan to take the money from and the reasons why. The client went to the NYC Deferred Comp office and spoke with a NYC Deferred Comp representative. The representative advised him to take a distribution from the one not suggested by Thomann Tax. If the client took the advice of the representative it would have cost him at least $13,000 more in taxes.
Remember, NYC Deferred Comp representatives are not your tax or financial advisors.