merlin3942
Recycles dryer sheets
- Joined
- Jun 9, 2014
- Messages
- 67
Hi everyone, After years of adopting the LBYM philosophy, I'm planning on joining the ranks of the FIREd at the end of 2015 at the age of 58. One of the "benefits" my company offers is to "buy back" our unused sick days accumulated over the years at 50% of current salary at time of retirement. I've stayed pretty healthy for the past 35 years, and assuming I stay healthy this year, that "buy back" option will be worth roughly 68K. My question has to do with which "tax year" it would be smartest to count that income against - the last year of full employment (i.e. arrange to receive that in 2015), or time it so that payment is deferred to 2016, when my employment income essentially drops to zero? At first I thought the obvious answer would be to receive that in 2016, but the marginal tax hit in 2015 might actually be less then than going from 0 to 68K in 2016? What all do I need to consider in making that decision?