Thread regarding Cisco Systems Inc. layoffs

Can you direct part of the lump sum to 401k?

Is there a way to avoid some taxes this way? I find the maximum contribution limits confusing as to how much over-50 workers can direct to 401k. Is it just the catch-up amount?

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| 1651 views | | 2 replies (last August 19, 2020) | Reply
Post ID: @OP+16vC83po

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Lump Sum is great option now for the numbers, but best to roll it into an IRA and use it/tax it later.
Which the 401K forces anyway.
If you're leaving a company - also roll your company 401K into an IRA.

Talk to a financial advisor briefly - or search/read deeply on it.
Not complicated.

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Post ID: @1mad+16vC83po

Pretax is limited to the catch up plus std.

I just went in to adjust my contributions up to make sure I hot the maximums before the exit date. The FAQs state they will pay the true up for matching dollars for those taking the ER.

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Post ID: @iyk+16vC83po

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