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Brown Cafe UPS Forum
UPS Retirement Topics
UPS Special Pension Buyout Offer - December 2016
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<blockquote data-quote="soxare1" data-source="post: 2373227" data-attributes="member: 64322"><p>I received the same postcard last week as well and have a similar vested amount and age.</p><p></p><p>From talking to my accountant, one of the options you have when you take a lump sum pension distribution is to spread the tax liability over 10 years. For example, if you were distributed $100K, you don't have to pay the full tax all in the year it was distributed, you would file $10K in tax liability for year 1, $10K in tax liability in year 2, etc. This could make a big difference of the overall tax liability so you aren't bumped up into the next tax bracket. Another advantage is thatlump sum pension distributions are not subject to state tax or social security and only subject to federal withholdings. </p><p></p><p>With all that said, looking forward to what they come back with.</p></blockquote><p></p>
[QUOTE="soxare1, post: 2373227, member: 64322"] I received the same postcard last week as well and have a similar vested amount and age. From talking to my accountant, one of the options you have when you take a lump sum pension distribution is to spread the tax liability over 10 years. For example, if you were distributed $100K, you don't have to pay the full tax all in the year it was distributed, you would file $10K in tax liability for year 1, $10K in tax liability in year 2, etc. This could make a big difference of the overall tax liability so you aren't bumped up into the next tax bracket. Another advantage is thatlump sum pension distributions are not subject to state tax or social security and only subject to federal withholdings. With all that said, looking forward to what they come back with. [/QUOTE]
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UPS Special Pension Buyout Offer - December 2016
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