The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Lump Sum vs Pension Annuity Date:  3/23/2011  8:45 AM
Author:  reallyalldone Number:  68690 of 88778

There has not been much mention of taxes in this thread other than an assumption that the lump sum could be rolled into a traditional IRA. This is true for 401Ks but is it true for lump sum pension payouts ?

One other factor may also be state tax treatment of pensions. In my state some portion of pension income is excluded from state income taxes so taking a lump sum would also include the calculation of foregoing the tax break other than the first year.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us