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Accounting, Payroll & Pension Issues/lump sum distributions
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Question
I am 54 yoa, I will retire in Jan. 2009. I will receive approx. $80,000 from my employer in accumulated sick leave/vacation and compensatory time. Does this constitute income since I have not yet received it? Can I defer this money somewhere to avoid paying taxes and take it out gradually?
This is taxable income and it will be treated like any other salary payment received in 2009.
If your company has a 401(k) or 403(b) plan, you may be able to contribute a portion of the payment to the plan. Check with your human resources department.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Allen
Expertise
Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience
Over 35years experience in the pension field
Organizations
Various actuarial organizations
Education/Credentials
MBA and various professional certifications
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