Many employees are allowed to cash-out unused sick or vacation time at year-end. Also, employees who retire at year-end will get their unused sick or vacation time paid to them at termination. If either of these situations applies to you this fall, you may have a golden opportunity to invest more into your Program account.

To defer your year-end leave cash-out, ask your payroll officer for the amount of and date the cash-out will be paid. Program paperwork must be completed at least 30 days in advance of that pay date. Many participants must complete this paperwork in early November in order to take advantage of an early December cash-out.

If your leave cash-out is due to your termination of employment, the IRS requires the cash-out be made within 2½ months of your termination date in order to be deferred. The paperwork to defer your termination cash-out must be completed one month prior to that pay date.

If you would like to defer all or part of your leave cash-out, call the Service Center at 1-877-644-6457. Information from Account Executives is for educational purposes only and is not intended as investment advice.