What will happen to any contributions an employee has made to deferred compensation?
Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration
Following the last day at work the employee will be eligible to withdraw funds contributed to deferred compensation. The funds will however, be taxed (20% federal; 5% State of Kansas) as ordinary income. The employee may also choose to leave their contributions with the State of Kansas. Account balance will continue to accumulate interest on a tax-deferred basis until retirement. Account balance may also be transferred to a new employer on a tax-deferred basis if the new employer qualifies to sponsor deferred compensation plans.
Affected employees should contact their EMPOWER Financial Advisors representative for additional information at 1-800-232-0024 outside Topeka or 296-7095 in Topeka.