Has anyone taken the severance payout in one lump sum? If so what does it look like for taxes being taken? Its been said they tax that at a much higher rate than if you did just the regular two week pay.
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You can’t roll a severance check into an IRA. WTF you talking about?
You could always roll it into an IRA to avoid paying taxes now
it all depends on your total income at end of year, but the lump sum I believe is taxed at 25% federally, which may be more or less than your actual tax rate at the end of the year. Just like with bonus payments. for me the amount they take is not enough so come tax time next year I need to make up the difference. Talk to a tax expert if you have actual concerns.
@OP research the tax implications for doing so. It may, or may not, be a solid idea for you.
Depends on the state you live in. It's around 20%. You also don't get medical coverage if taken in a lump sum. You may need to do some math to see which way would be better for your circumstances.