Should we take the lump sum? What's the down side?
9 replies (most recent on top)
If you like being taxed through the nose, you should take the lump sum.
ask your accountant. taking a lump sum could bump to you a higher tax bracket at year-end vs spreading payments into 2025.
Taxed more with lump sum. Take it bi-weekly. And .......... you can look for, apply and interview during notice period (I asked HR), you just can't "start" a new job within notice period (lest they somehow find out, reference check?)
Once your 60-day (90-day in some locales) working/non-working period has passed, you are a free agent. You can start working another job without losing your bi-weekly salary continuance nor benefits. Its only during the 60/90-day period that matters.
it will depend on many personal factors some of which may include whether you get health insurance through a spouse as well as length of severance,.your tax brackets, and whether taking a lump sum now would throw you into a different tax bracket this year. If your severance periods goes into next year then you would be taxed on the entire lump sum this year
Take the bi-weekly severance. Find another job anyways and don't tell anyone about it.
Can you take the lump sum? I thought it was bi-weekly for the severance period unless you got a job and tell them about it. Just keep the bi-weekly and your benefits.
Unless I had some kind of major medical expense or something, it's hard to imagine a scenario where I'd prefer a lump sum.
If you take the lump sum you throw away your benefits package.