teacher retirement lump sum
2007-01-16 13:13:25 · 4 answers · asked by Bob G 1 in Business & Finance ➔ Taxes ➔ United States
It's hard to tell, but if you get a lump sum of $136,000, they'll probably take out 20% right away. Then when you file your tax return, depending on what exemptions, etc. you take, you may or may not have to pay more. Maybe you'll even get some $$ back. Your guess is as good as mine. The Income Tax Bureau has many different schedules for paying iincome tax. I never received that much money in a lump sum, so I don't really know. Sorry!!
2007-01-16 13:24:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If this is pretax money, can you roll it over (or most of it) into a rollover IRA?
There are special rules for taxation of lump sum distributions. Download Publication 17 at irs.gov and search for "Lump-Sum Distributions" - it's around page 73.
You might want to consult a CPA regarding your options, since the rules are a little complicated. This would generally be out of the range of H&R Block or other mass preparers.
2007-01-16 21:41:22 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Depends on your accountant. I am in Los Angeles, and the guy I use is named Ogden Page. His phone number is (323) 962-2550.
Give him a call. I bet you can legally pay practically zero. Good Luck.
2007-01-16 21:26:54 · answer #3 · answered by roscoedeadbeat 7 · 0⤊ 0⤋
too much
2007-01-16 21:24:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋