Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I agree with Gail. You need to provide more information. Taxes on retirement funds are only calculated when you withdraw the money. For most plans, if you withdraw the money before age 59 1/2 you have a 10% penalty.

However, most states have a defined benefit plan but allow for lump-sum distributions. Normally, there is a large deduction if the a lump-sum distribution is selected because they expect that you will have investment earnings that the plan would have had. After that deduction, you get taxed on what they pay out.

Provide more information and someone on this board can probably help you out.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.