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Posted by joetaxpayer on January 20, 2008, 1:08 pm
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a2mgoog@yahoo.com wrote:
> If anyone can help me with this, I would appreciate it.
>
> I turn 55 this year, and I become eligible on my birthday to get a
> lump sum retirement payment from my former employer. It will be
> around $90K. I will take it now because I'm afraid if I wait until
> I'm 59, they might change the rules, or stop paying altogether, as
> some other companies have done.
>
> I haven't had to file a
> return because my IRA plus my savings interest comes to less than the
> minimum income needed to file (now about $8K per year). Since I am
> single, my house is paid off, and I live frugally, I can actually live
> quite comfortably on about $10K/year.
Roll that money directly to an IRA. The 'zero bracket' in 2008 is $8950,
take advantage of it. (Exemption in 08 = $3500, STD deduction for single
= $5450). The increases to these numbers may very well stay ahead of
your need for cash, which would be great. Worse case, you start to pay
10% on some of the withdrawal.
JOE
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