I will get a sick time payout at retirement. Is there something I should do to avoid being taxed on it?

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I will get a sick time payout at retirement. Is there something I should do to avoid being taxed on it?

i work for a city govt and will be getting approx $15000 at seperation. Money market or Roth IRA? Can taxes be avoided?

2007-03-13 14:28:24 · 2 answers · asked by PatricH 1 in Business & Finance ➔ Personal Finance

2 answers

You can increase the contribution to your 457 plan to the maximum allowed so that as much as possible is received pre-tax.

You could also make a deductible IRA contribution if you're eligible.

2007-03-13 14:35:59 · answer #1 · answered by Anonymous · 1⤊ 0⤋

Sick time is earned income and you will be taxed on all earned income (period).

2007-03-13 21:51:17 · answer #2 · answered by annazzz1966 6 · 0⤊ 0⤋