I have about 13 years under my belt, and I'm considering taking the VSP.
What tax percentage will it be at? I've heard 40% but that seems wrong to me.
Also, if I owe a 401k loan, will that be held also or it's up to me to pay?
24 replies (most recent on top)
Hope my tax dollars are going to destroy more Orc invaders, better than going to bail out welfare Red states
The FAQ section answers all those questions.
@1uoi+1t29Xujx Amen. Enjoy what comes next.
@1hff+1t29Xujx Run numbers? What numbers? If you are pension eligible you can run your own pension calc estimate on netbenefits. If you don't have a financial advisor and are considering retirement, get one. If Fidelity is your only brokerage, you can consult with them. HR isn't going to do anything for you.
@1kdo+1t29Xujx correct
@1uoi+1t29Xujx, happy for you - congratulations - best wishes as you wind down here.
Anyone ask HR answers? Seems like it’s lump sum at 22% and state supplemental if state has this rate.
Guess that is the formula
22% lump sum then do tax bracket on remaining for 2024 pay plus remaining lump sum
Thoughts?
I’m in my late 40s with 60 weeks and I’m done here. I’ve saved alot up till now but been trapped in a chair for far too many hours stressed 24x7 about everything coming due or overdue.
My only plan is to not die in my chair working at Verizon on things that don’t matter at all.
Has anyone talked to HR or Fidelity ? Will they run numbers for you based on latest paystub and lump sum?
Curious to age groups with 60 week cap. Anyone not near retirement (40s-55) calling it a day?
Where our money goes posts may sound sarcastic but it is true. Sad but true.
Going to illegal migrants, funding wars to profit the military industrial complex, our corrupt leaders and so on
Even though we’ll be paying a lot of taxes here, try to focus more on the good that your money will be used for by our Federal government. Things like continuing to fund the Ukraine war, building out the nations’s EV charging infrastructure and other climate change initiatives.
@pna+1t29Xujx Or you can have it changed to a withdrawal and pay taxes on it, and an additional 10% penalty if you are under 55. I would pay it off if you can. You’re just paying yourself.
I am not going to say no because I get pushed into higher tax bracket. It’s a win no matter how much I have to pay. Monday we can start pushing the button!
I think if you’re maxed or capped at 60 weeks you’re basically getting 1 year pay (gross). The rsu is seperate right into false direct deposit account at same tax rate!
Is my math right?
I just looked at how much tax was taken out of my STI this year since it was a separate check - 28.5% ... I'm figuring it'll be somewhere about there. I'd rather have more taken out and get money back than having to PAY Uncle Sam. I hate paying after the fact.
It is up for you to pay. If you don't pay it, it will count as a penalty as it is converted into a withdrawal. You'll get hit with a 10% penalty fee with the IRS.
As for salary, take what you made so far this year and then add the payout. Then go visit the IRS and determine. However, the tax breakout is as follows. You can find the below data at the following URL...
https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
Tax Rate Filing Married Jointly Tax Owed
10% $0 to $23,200. 10% of taxable income.
12% $23,201 to $94,300. $2,320 plus 12% of the amount over $23,200.
22% $94,301 to $201,050. $10,852 plus 22% of the amount over $94,300.
24% $201,051 to $383,900. $34,337 plus 24% of the amount over $201,050.
32% $383,901 to $487,450. $78,221 plus 32% of the amount over $182,100.
35% $487,451 to $731,200. $111,357 plus 35% of the amount over $231,250.
37% $731,201 or more. $196,669.50 plus 37% of the amount over $578,125.
You can choose to pay off the 401k loan or request coupon book to pay it down under your current payment schedule.
I’ve heard you can sum up pay and lump sum then apply tax bracket percent to those dollars within bracket ranges.
Chunk removed at lump sum payout too
Federal all the same. If you have a state income tax more.
Think of it this way, a RIF you will also get hit with higher tax, VSP gives you 25 more weeks pay to offset that tax. Yes, more tax but more money.
Just like a commission check about 40% plus about another 5-10% when filing 24 taxes. Basically half goes to the government.
20% will be taken out from VSP check. if you took a loan out then it turns into a withdrawal on the unpaid potion of loan
Probably a good indicator would be someone who took the past VSP and happens to be in this board.
Well you have to consider the money you already made this year and add that to the total. You might just push into the next tax bracket or more, so most likely you will have a very large tax bill. I did some hypothetical calcs with my numbers and the shear amount of taxes takin out now and due in 2025, it's more then half gone.
Depends how much you make now you might fall in the 24% bracket