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Level 1

Question

Lump Sum

Forum|Forum|6 years ago
December 16, 2019
1 reply
2 views

I am retiring soon.

I have both a 401K and a pension plan.

What will the consequences be if I elect to take a lump sum from both?

Level 15

Depends...if the distributions + all your other income is high you will pay a lot in taxes. Best to do some calculating before you anything you may regret.

Level 15

You have not said how old you will be when you take out the money. Will you be older than 59 1/2 when you take money out of the 401k? If not, expect a 10% early withdrawal penalty in addition to ordinary income tax in your tax bracket.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**