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titanic
Level 1
Dec 16, 2019 10:09 PM UTC
Question

Lump Sum

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?

    2 replies

    Critter
    Critter
    Level 15
    Dec 16, 2019 10:34 PM UTC

    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
    xmasbaby0Level 15
    Level 15
    Dec 17, 2019 3:08 AM UTC

    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.**
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