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Deferred Comp Firecalc question
Old 03-10-2019, 01:33 PM   #1
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Deferred Comp Firecalc question

Does anyone have experience adding deferred compensation into their retirement calculations? Given deferred comp is invested and then paid out over a series of years I've assumed it should be treated as Any other tax deferred investment like an IRA. With my deferred comp there is no RMD but rather a series of payments spread out over 5 to 20 years. Thoughts on how to add this in the calculators. My account is invested in several balanced funds and pays quarterly over about 20 years. I pay taxes as the funds are distributed. Is it correct to treat this like any other tax advantaged fund?
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Old 03-10-2019, 03:51 PM   #2
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Add a pension for the annual amount and add an offsetting off-chart spending after 20 years?
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Old 03-10-2019, 07:19 PM   #3
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Quote:
Originally Posted by pb4uski View Post
Add a pension for the annual amount and add an offsetting off-chart spending after 20 years?

Thats one way possibly. Let's say its $1MM paid over 20 years. Ive assumed the $1MM is in my NW and I invest it over a group of funds. It goes up or down with the market and is adjusted to show the distributions. I pay normal taxes as the money is distributed. In the calculators Ive just shown the starting $1MM balance and adjust each year depending on the balance. Seems simple but I am checking my logic.
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