Can anyone confirm the tax treatment on distributions from the deferred compensation plan? My employers plan details heavily imply that 100% of the distribution is taxable at the income tax rate, including capital gains., but I've been unable to confirm that's true.
I haven't tried to do the math, but I'm wondering if it would be better to pay the income tax now, invest in a taxable account, then I only need to pay the capital gains tax rate on the increase rather than a potentially higher income tax rate.
Thoughts?