Howdy all!
I was wondering if anyone had already been in a situation where they left a DB pension program and had to take a LIRA portion, and a Transfer value that is taxed. When speaking with the pension person, they indicated that the transfer value would have a withholding of 30% if it was above 15k. To me, that sounds like the 30% is simply an estimate, and if the person had no income/super high income, the 30% wouldn't necessarily be valid. Anybody seen anything on how that would be taxed?
The other point is taxation timing. Do you get taxed the moment you receive the money, or from when it was due? In other words, if you retire in december, can you then receive the money in january, and claim in in the new tax year, (Hopefully while having no other income to reduce taxes?)