No. of Recommendations: 2
...If you take the monthly payments, they will probably be taxed...


If you are not maxing out all your deductable retirment accounts(401k, IRA, etc)then you could do something like increase your 401k contributions by $400 a month and it woulk mostly offset the extra $400 pension income on your taxes. There could be some phase in or phase out income limits that might be involved so the offset might not be exact.
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