What taxes do you pay on deferred income?

Deferred compensation income that is contributed to your retirement plan is subject to the social security and medicare taxes in the year that the amounts are contributed to your retirement plan.

When you reach the retirement age and start receiving distributions from the retirement plan the taxable amount of the distributions will be added to all of your other gross income on your 1040 federal income tax return and be subject to the income tax at your marginal tax rates.