Deferring Annual Leave
Texa$aver participants can defer unused annual leave payments to their 401(k) and/or 457 plan account upon termination. The IRS allows deferred compensation plans to defer all or a portion of the lump sum compensation that is paid within the 2 1/2 months following separation from service. Contact your HR or Payroll department before your last day of employment.
If you defer only a portion of your unused annual leave amount to your Texa$aver 401(k) or 457, you will receive a check for the remainder, which will be taxed. Maximum annual deferral limits apply.