A large severance can push you into a higher tax bracket, but you can reduce the impact. Contribute the maximum to tax-advantaged accounts like a 401(k), IRA, or HSA. If eligible, make catch-up contributions. You might also defer income (if possible) or prepay deductible expenses. Check if severance qualifies for income averaging or lump-sum distribution rules in your country. Consulting a tax advisor is worth it — timing and contribution limits matter a lot.
