I work in .gov and have earned through unpaid over time a Compensatory Time bank which will be paid out in about 6weeks, due to a promotion. The total payout pre tax amount exceeds 20k
I already max out my 457b plan, but just married this summer and my wife has no 457b plan.
I'm wondering if there is any way to shield this CT bank payout from taxes by maxing out a new 457b plan for my wife.
Can I take post taxed income, put it into a 457b and write it off?
A co-worker said I "1099" and take the untaxed money and max out a 457b for her this year and then pay taxes on anything remaining when I file next year.
Any advice? Should I hire a tax guy?
Posted by Adventurous-Buck