topic Re: Lump Sum in Retirement tax questions

Lump Sum

titanic — Mon, 16 Dec 2019 22:09:44 GMT

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?

Re: Lump Sum

Critter — Mon, 16 Dec 2019 22:34:39 GMT

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.

Re: Lump Sum

xmasbaby0 — Tue, 17 Dec 2019 03:08:39 GMT

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.