Thank you, that's a great suggestion. I'll likely do that once I find another job, but would hate to incur a penalty if it takes longer than expected to find a job and I needed to pull funds from my retirement account.
In the past, when I recv'd an annual bonus, it seemed like the amount taxed increased, as if I was making that higher amount on every paycheck. I'm not sure what taxable bracket I'm in, but my average federal tax taken from my paycheck was 11.4% (based on simple division from the amounts on my final 2022 paystub). The paycheck in 2022 where I received the bonus, the federal tax taken was 18.6%. Perhaps a "Bonus" falls into a different taxable category than normal pay. If that's the case, what category does the severance pay fall under?
