Many employers offer retirement incentive packages for their employees. Often, the packages involve a lump sum payment of cash, accrued sick and vacation time, or some other benefit, which could result in a large and immediate tax hit for those receiving the incentive. Further, paying these amounts through payroll results in FICA taxes charged to the employer.
Our Employer Plans Division can help customize a plan that will benefit you and your employees using a 403(b) plan for these severance packages. Please contact our Employer Plans Division at (800) 433-1828, ext. 3 or email us at firstname.lastname@example.org for more information.