If you plan to retire any time in 2004 you can use your Deferred Compensation to give yourself a tax break. If you’re not in one of your double-up years, you might consider stopping your Deferred Compensation as of January 1, 2004.

At the time you file your retirement papers, you can advise the Retirement Board to defer from your lump sum payout any amount up to the maximum amount allowable under the Deferred Compensation program for 2004. The maximum amount you can defer in 2004 will be $16,000.

If you are not in the Deferred Compensation program, you can join now to set up your account, and then stop deductions on January 1, 2004. If you choose, you can defer the maximum deduction from your paycheck into your new account between now and the end of 2003. Your lump sum payout is taxed at around 35% so you can lower your taxable amount.

After January 1, 2004 and before your retirement date, you can contact your ING Representative and set up how you want the funds dispersed within your account.

These are some suggestions you might consider. For individual assistance, you need to contact your ING Representative, Meghan Doherty, at (415) 364-2017.

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