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Tax Law (Questions About Taxes)/pension lump sum and tax brackets

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Question
I am 60 year old, single, no dependents, live in Texas. I claim 1 on W4. I never exceed my standard deduction even if I try to itemize even with my mortgage interest.
I am taking early out retirement from the airlines.
I am recieving 60k buy out plus 71k lump sum pension.
I make avg 35k this year and previous years.
My plan is to take the after tax amount and pay off my mortgage completely plus all credit card debt and close down all credit cards except one for emergencies.
Now, I am concerned that because this amount will place me in a much higher tax bracket for 2015 that I may owe additional exorbitant taxes that I will not be able to pay for 2015. I expect to take low wage job this year.
I don't know what to do.
Is it possible to place some of the money in an IRA and offset my total annual income amount for 2015?

I read that I can only place 15k? Not sure how much that will help.
Would it help to claim 0 on my w4 so more taxes will be withheld this year?  

Do you have any advice for me?

Thank you. Rosemary Gossage

Answer
hi rosemary

you need professional advice.  

you should be able to roll all of the payouts into an IRA and only take what you want when you want.  

yes. your taxes will go up if you take it all now.  I am working with another client right now in the same boat (but for he is on social security), if he takes all the company money, 70% of his social security will be taxed and it will cost him 4 or 5k. if he puts all but a little bit in an ira, he pays no tax on the social security.  

i would suspect the numbers are similar for you.

if you send me a new question but mark iT PRIVATE, i will provide you my contact information.

p

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

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19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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