I live in MN, divorced my wife (bread-winner, I have zero income). I was just sent paperwork for how I want payment. I will write a lot, to make sure I"m specific enough, b/c I'm clueless how to proceed from here. I want to cash these out, not roll them over in any way.
1) 403(b) $73,616
It states (other option was to roll-over) "I do not elect a direct roll-over of my lump sum payment, and I understand that payment will be made to me. I understand that Federal income tax
will be withheld at the rate of 20%.
*I request the following State income tax withholding
___ $___________fixed dollar
___ No State income tax withholding
The next one is a pension plan in the amount of $16,877.24
I am given the same options as far as how much I would like withheld, if any at all.
Do I, or do I just get the lump sum (minus 20% federal) and not pay MN state tax
on the monies?
Thank you so much.