NYC Deferred Comp “Advice”

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.

6 replies
  1. John Vincent Cirolia
    John Vincent Cirolia says:

    So true! I have learned NEVER to take what I hear from their reps as gospel truth. More than once a rep on a 2nd visit has contradicted that the rep on the first visit has told me. Email me directly if you would like me to share specific examples. As a result, I ALWAYS look to find independent confirmation before making a final decision. More than once, Peter, your advice has saved me money. Keep up the good work!

    John

    Reply
  2. Robert zatyk
    Robert zatyk says:

    Question I retired 8/31/2018, with 26 years 8 months. I am 48 yes old. Can I take from my 457 and pay college loans that I have out for my son without paying a penalty. I called deferred comp they said yes. I called back and got someone else they said no. Was looking to take like $150k out. Interest is killing me.

    Reply
  3. Jim B
    Jim B says:

    Why would anybody who regularly reads this blog venture to ask DCP reps a question other than their location and hours of operation is beyond me……
    As always, thanks Pete!

    Reply

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