gauss
Thinks s/he gets paid by the post
- Joined
- Aug 17, 2011
- Messages
- 3,615
If a Megacorp offers an employee a "lump sum payment" of N-months of their salary to retire, does anyone know the tax consequences of this?
I know that DB pensions that are converted to "Lump Sum" payments can be rolled into an IRA and taxes managed accordingly.
The thing is that in the case mentioned above, the pension plan does not appear to be directly involved -- it sounds more like a salary continuation type of offer.
But on the other hand, they they use the Lump Sum terminology and the money apparently is all paid at once as opposed to over several months.
If anyone has any direct experience with the tax options of when an N-month of salary Lump Sum is offered in exchange for retirement, I would like to hear your thoughts on the taxation options that are offered, if any.
Thanks in advance
-gauss
I know that DB pensions that are converted to "Lump Sum" payments can be rolled into an IRA and taxes managed accordingly.
The thing is that in the case mentioned above, the pension plan does not appear to be directly involved -- it sounds more like a salary continuation type of offer.
But on the other hand, they they use the Lump Sum terminology and the money apparently is all paid at once as opposed to over several months.
If anyone has any direct experience with the tax options of when an N-month of salary Lump Sum is offered in exchange for retirement, I would like to hear your thoughts on the taxation options that are offered, if any.
Thanks in advance
-gauss