EP 4 - Washington State's Deferred Compensation Plan Explained

Understanding Washington State's Deferred Compensation Plan for RetirementHost Ethan Meikle discusses the details of the Deferred Compensation Plan (DCP) offered to Washington State employees. He clarifies that DCP falls under the 457 tax code and outlines contribution limits and flexibility of the plan. Insights are provided into traditional and Roth DCP plans, investment options including Target Date Funds, tax benefits, and strategies to decide between pre-tax or Roth tax routes. He raises potential risks with Target Date Funds that aren't unique to individual retirement plans, advocating for custom-built allocations. Ethan discusses the potential rise in taxes after 2025 and the need to prepare for future tax environments. He also hints at next week's topic – Roth conversions into DCP and also highlights an online service offered to help with DCP investment advice strategies.Outline:00:05 Introduction to the Podcast00:23 Understanding the Deferred Compensation Plan00:57 Flexibility and Tax Options of Deferred Compensation Plan01:30 Contribution Limitations and Investment Choices02:29 Understanding Target Date Funds03:05 The Risks of Targeted Funds04:04 Custom Built Allocations for Retirement04:27 Tax Benefits of Deferred Compensation Plans04:41 Choosing Between Pre-Tax and Roth Deferred Comp05:47 Understanding Future Tax Implications06:46 The Benefits of Roth DCP07:50 Roth Conversions and Future Episodes08:09 Conclusion and Additional Resources⁠⁠Free Washington Retirement Planning Community⁠⁠⁠Plan 3 Investment Advice⁠⁠Schedule Meeting⁠More free resources at ⁠WATRSPERS.com⁠