The Layoff discussion User says “For Chevron employees now retiring. Lump Sum or Annuity?” regarding Chevron Corp.. k A retirement account to which an eligible employee can contribute a certain amount of his or her pretax salary earnings are tax deferred..Welcome to Merrill Lynch. Sign in or register here to gain weekly insights, read client stories, and learn about client solutions.. k Plan A salary reduction plan that allows employees to contribute a portion of their salaries on a tax deferred basis. When this type of employee benefit is available to you, you should give it serious consideration..
You outlined things well, @jlcd, but you forgot to add in Social Security. You can start collecting it as early as and that will counterbalance any inflation concerns you have about the annuity..The General Rule. This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans including commercial annuities ..