Retirement Distribution Strategies
When considering a pension lump sum, opting for a direct transfer rollover into an IRA can help avoid immediate tax implications and withholding. Instead of taking cash, which incurs a 20% withholding and higher taxes based on your income, rolling over the funds preserves the full amount for future investment. Remember, withdrawals in retirement will still be taxed as ordinary income, so planning ahead is essential.In this clip
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The Ramsey Show
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