How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10127
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

The Company I worked years has recently been sold and they

Customer Question

The Company I worked for 30 years has recently been sold and they are terminating the cash pension plan . I am 58 and considering taking a Lump payout so I can payoff my mortgage . In the paperwork under the Special Tax Notice sections it mentions exceptions
to the 10% penalty on early distributions and one exception lists ( payments made after separate from service if you will be at least age 55 in the year of separation ) Does this mean I will not be accessed the 10% addition income tax
Submitted: 6 months ago.
Category: Tax
Expert:  Lane replied 6 months ago.

Yes, that's right.

...

For defined contribution plans (401K's, cash balance plans, etc.) the rule is different from IRA's (always 59 and 1/2)

...

For pension plans the rule is that if you separate from service after age 55, the 10% early retirement penalty is waived.

Expert:  Lane replied 6 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

I know it takes an extra step, but JustAnswer won’t credit us for the work until you rate.

...

Thank you!

Lane

I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986.

Expert:  Lane replied 6 months ago.

By the way here's how you calculate MODIFIED AGI:

...

Take your regular Adjusted Gross Income from the bottom on Page 1 of your Form 1040 and subtracting taxable Social Security benefits.

...

Then add back tax-free adoption assistance payments and tax-free income from U.S. Savings Bonds redeemed to pay qualified education expenses.

...

Then add back any deductions for IRA contributions, qualified tuition and fees, qualified student loan interest, domestic production activities, passive losses other than the kind we are talking about here, and certain losses incurred by real estate professionals.

Expert:  Lane replied 6 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

I know it takes an extra step, but JustAnswer won’t credit us for the work until you rate.

...

Thank you!

Lane

I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice on three continents, since 1986

Related Tax Questions