Reply To: Retirement Package Vacation Pay Rollover

Home Fairmark Forum Retirement Savings and Benefits Retirement Package Vacation Pay Rollover Reply To: Retirement Package Vacation Pay Rollover

#16311
kburkett
Participant

Thank you so much for your reply could we further discuss possible options to tax shelter the unused vacation pay
I believe that the IRS will allow the unused PTO to be contributed to a company 401k as long as the plan allows it and as long any PTO money does not exceed the max contribution limits of the individual.

So then would that also be allowed in a 403b? And then upon the official retirement date the entire account could be rolled over to an IRA……so for all practical purpose someone could increase their payroll contributions to match OR account for that of the PTO amount

I would greatly appreciate your thoughts