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Edcosoft sez:

<<Your quote is from PIXY who doesn't advocate LSD for anyone because they don't apply to everyone.>>

NO, that is not what I said. And I suspect you know that full well and are seeking to antagonize me. What I said was "That option, though, requires close examination because it's contingent on a whole host of factors such as your income tax rate today versus that in retirement, your age today, your need for the cash for income, your overall net worth, and a few other things. If your spouse was over the age of 55 on separation, if you are in a 31% marginal tax bracket today and expect to stay there, and if you have no need for the cash in retirement, then you could cash out today to enjoy a minimum income tax burden on your family over your lifetime. However, before you take that step you should consult your tax advisor. For most folks, it simply is not a good option." (emphasis added) I truly resent your trying to put words in my mouth, particularly when they are patently untrue.

For those who are interested, Edcosoft and I have had this exchange before on another board. You may find the thread of that discussion starting at in message 214 on that board and ending with 225. My rationale for my position is laid out quite clearly therein as is Edcosoft's.

I maintain LSDs may be appropriate in some very limited circumstances. Edcosoft believes otherwise. That's his right. I would just caution folks to look long and hard at this issue before making the choice.

<<She has to be at least 59 1/2 this year, and 65 if next year. >>

That is absolutely correct for the use of 5-year or 10-year averaging. To simply take the lump sum distribution and pay ordinary rates on whatever bracket her $50K would place her, she would need only attain the age of 55 in the year of separation.

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