Defer Sick and Vacation Leave
Many employees use the Catch-up option to invest their sick and vacation leave cash-out at termination. If you expect a large leave payment and don’t need the funds right now, you can invest a large lump-sum into your Ohio Deferred Compensation account and defer the taxes until you need the funds.
It’s easy to do!
To defer year-end leave pay
Ask your payroll manager for the dollar amount of leave available and the date it will be paid. Ohio Deferred Compensation must receive this request at least 30 days before their pay date, so call us at 877-644-6457 at least 30 days in advance. For example, many participants must complete this request in early November to take advantage of the December cash out.
If leave cash out is due to ending employment or retiring
In this circumstance, the IRS requires the deferred cash out to be made within 75 days of the employee's termination date or within the same calendar year in which they terminate, whichever is longer. The request to defer their termination cash out must also be completed one month prior to that pay date.
Call our Service Center at 877-644-6457 to defer your leave pay.