Tax Deferral of Vacation Payout

When you leave employment, you have the option to request tax deferral of your lump sum vacation payout to your 401(k), 457, and/or 403(b)account(s). You are eligible to transfer up to the maximum contribution limit to each account, minus the amount you have already contributed for the plan year.

If your separation date is on or after November 1, you have the option to make the transfer for the current and following tax year, up to the maximum annual contribution limits.

Individuals should contact their financial advisor regarding this option.

Individuals considering this option should contact the Office of Human Resources - Benefits prior to your separation from CSU.  Generally,  this option must be exercised at least 30 days prior to separation from the University.