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1. In order to reduce my current income taxes, I should consider:

A) Contributing to a Roth 457 account.

B) Hiring a crafty accountant to find a way around the IRS regulations.

C) Increase my contributions to either the pre-tax 457 or pre-tax 401(k) or both.

2. It is January 2014, I found that I have $2,000 excess cash available and I feel I did not save enough for my retirement in 2013, can I do anything?

A) It's too late to make a contribution to a retirement plan for 2013.

B) Contribute to the Traditional NYCE IRA and/or Roth NYCE IRA for tax year 2013 prior to the tax filing deadline.

C) Ask the IRS for permission to use a Special Exception Rule.

3. My spouse is a homemaker. Is there a way for my spouse to have his or her own retirement savings account?

A) No. Your spouse does not have "earned income" (salary, wages or self- employment income) and is therefore not allowed to open a retirement account.

B) Yes; If you file "Married Filing Jointly," your spouse may contribute to the "Spousal NYCE IRA."

C) No, but you can deposit an extra amount into your DCP account on behalf of your spouse.

4. I have benefits at my workplace. Which one might help me to pay less income tax?

A) The Health Care Flexible Spending Account (HCFSA) program to pay for eligible out-of-pocket medical expenses

B) The Dependent Care Assistance (DeCAP) program to pay for expenses to care for my children and dependents

C) All of the above

5: Every year I get a very large refund from the IRS, what should I do?

A) Congratulate yourself: You are a tax efficient citizen!

B) This is a tax exempt gift from the IRS, to be spent as you see fit.

 C) This is a refund of your own money generally as a result of too much withholding by your employer.

6: Do I have to take a Required Minimum Distribution "RMD" from my Deferred Comp accounts?

A) If you are still working for the City you do not need to take the RMD from your 457 or 401(k) accounts

B) You need to take a RMD from your Roth IRA

 C) No. You don't have to take the RMD if you don't need the money that year

For more information, call a Certified Financial Planner professional at the Deferred Compensation Plan at 212-306-5050. Our Planners are there to answer your questions free of charge. They do not sell and product and do not work on commission. You may want to consider attending our seminar "Protecting Your Family Through Insurance Planning." Go to our website for the Calendar of free Seminars available through the Deferred Compensation Plan.