I recently was RIF after 28 years of service. Can I roll over my severance to an IRA to avoid taxes. At 64 most likely will be treading on a tight budget. God Bless all the Good Folks
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Dammm congrats! If I make it to 64 at the V then get laid off id be thanking my lucky stars
@dk man you are a dimwit
@b7 "you're" 😕
@dk they asked a question. How can they be wrong?
@b7 you’re wrong. It’s income, you can’t put it all in your Ira. There are limits.
@OP hi, can you not call Fidelity and ask, vs relying on us chuckleheads out here?! 😉
Not really. You could contribute up to $8600 from your severance check to an IRA in 2026 if you are over age 50. That $8600 can be deducted from your taxable income and prevents taxes only on that amount. You should meet with a good advisor for advice because certainly you got a fairly high severance for 28 years of service. Your severance is treated as wages, so there isn't a whole lot you can do to prevent taxes.
@ae Read it again. OP is not talking about anything other than his severance. So your wrong Colonel Sanders
Reach out to Fidelity. I think you are supposed to take out a certain amount every year at 59.5, and going forward.
You can borrow from it (avoiding taxes), without selling it. Although would only do a small amount. For instance, borrow 15%, live on 10%, and use the other 5% to pay your loan. If you are short you can borrow more, or sell it off. The key is to keep it low leverage.
I would not borrow more than 15%. I’m not a financial advisor. This is for entertainment purposes only. Reach out to Fidelity professional and ask for advice about it.
Good luck whatever you choose to do.
You can rollover your lump sum pension, 401k, but not your severance pay
You can only roll your 401k , lump sum pension and sold stock to an IRA.
@a4 wrong
@OP I got my lump sum pension in 2009 and did exactly that
No. Unfortunately it will be counted as regular compensation.