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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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hi. i am a 60 year old in full time employment. i have, within

Resolved Question:

hi. i am a 60 year old in full time employment. i have, within weeks a frozen pension and a army pension paying out a cash lump sum. what is the max i can draw tax free, thanks.
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello steve,

Please explain what you mean by "frozen pension".

Why have you determined that any of your pension benefits are nt taxable?

Customer: replied 8 years ago.
my frozen pension was a company pension with a previose employer who did not think it could continue with it so they put a lump sum in and handed the running of it to a group of ellected trustees. i am told ican have atax free lump sum followed by a taxable pension.
Expert:  Merlo replied 8 years ago.
Hello again steve,

There are a few pensions which are exempt from tax, but they are pensions related to military disability.   A normal pension account that you had with an employer is fully taxable, and your military pension is also fully taxable, unless you are receiving a VA disability pension.

I am not sure why they told you that part of this would be tax free.

Do you have any more details which might help explain why you were told this?

Merlo and other Tax Specialists are ready to help you