Kansas Department of Administration

What will happen to any contributions an employee has made to deferred compensation?

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.

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