Deferred compensation plans can be a tremendous tax saver but when things don't go as planned, they can cause greater taxation to increase substantially.

Q. I've been participating in my company's deferred-compensation plan. "Unfortunately" my company was just sold and all funds from my deferred-compensation plan have been paid out as income in a lump sum (so much for distributions dragged out over years in a lower tax bracket). I'm a bit miffed for two reasons: 1) I'm worried that this and other income garnered from my company's sale will put me in a higher tax bracket such that had I never participated in the deferred-compensation plan I'd have been better off (understanding hindsight and all) and 2) I moved to GA a year ago, but prior to that I lived in FL where the majority of my deferred compensation was earned. Since I was paid out in GA, state taxes were withheld from the full amount. Do I have to pay GA state tax on my FL deferred income (at least the basis amount)? Thanks, BeckyRead More