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You say early retirement so I assume you are under 59.5 years of age. The 20% tax on this distribution occurs if the check is made out to you, by law, by your employer. And if under 59.5 you will probably be subject to a 10% penalty levied by the IRS. To avoid the 20% tax on early distribution funds, you need the check made out to an IRA custodian and roll the amount into an IRA. No 10% penalty either. I believe an IRA is the only acceptable investment vehicle for early distributions.

There are special circumstances where an early distribution could be allowed but not knowing more about your situation...? Check out the TMFs IRA link for more info.

Why not have your son rent to purchase at 400/mn and add or apply that amount to your payment? Must be a better solution than 30% of your funds going to the gov.

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