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Reply to "Inherited ex-husband's $200,000 pension - withdrawal strategy?"
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[quote=Anonymous][quote=Anonymous]3rd option - take the monthly pension payment in retirement - is the best if you are solely concerned about minimizing taxes. You won't pay much in federal taxes on $850/month when you are no longer working.[/quote] I'd do the math on this carefully. How much tax OP pays on this will depend on how big the rest of her income is. Meanwhile, $850/mo for 25 years (guesstimating a long life and long retirement) still amounts to only $255k over that stretch and it seems like OP could do a lot better than that taking the money in the nearer term and investing it. I'd be inclined to take the rollover/5 year option.[/quote]
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