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Brown Cafe UPS Forum
UPS Retirement Topics
Got pension payment offer.
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<blockquote data-quote="overnite" data-source="post: 4244212" data-attributes="member: 78504"><p>If you don't roll it into an IRA or 401k and you're under 59 1/2 you not only pay income tax on it at your highest marginal rate, you also pay a 10% penalty.</p><p></p><p>So by spending it , or even paying down credit card debt, you lose the power of having that money work for you on a tax deferred basis, and you'll give as much as 45% of it to the Federal government (not to mention what you'll owe on state income tax depending on where you live.)</p><p></p><p>I would strongly suggest talking to a financial planner before you decide to take the lump and certtainly before you decide not to roll it over</p></blockquote><p></p>
[QUOTE="overnite, post: 4244212, member: 78504"] If you don't roll it into an IRA or 401k and you're under 59 1/2 you not only pay income tax on it at your highest marginal rate, you also pay a 10% penalty. So by spending it , or even paying down credit card debt, you lose the power of having that money work for you on a tax deferred basis, and you'll give as much as 45% of it to the Federal government (not to mention what you'll owe on state income tax depending on where you live.) I would strongly suggest talking to a financial planner before you decide to take the lump and certtainly before you decide not to roll it over [/QUOTE]
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Got pension payment offer.
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