Pension Paid As Lump Sum

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Joined: Mon Jul 03, 2017 11:54 pm

Pension Paid As Lump Sum

Post by Motogopher »

My employer offers a lump-sum payment option in place of the pension payment. I have the tool working well with the 401k savings, pension and SS. I want to look at options with the lump sum payment and turn off the pension payment to see the effect. How would I enter the lump-sum payment?

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Joined: Thu Feb 28, 2008 6:48 pm

Re: Pension Paid As Lump Sum

Post by jimr »

The answer depends on the tax treatment of the lump sum. I'm not that up on pension distribution taxation, but assuming the lump sum payment can be rolled into a 401k or IRA, it should be ok to enter it as a tax-deferred savings cash flow.

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