Frequently Asked Question
If I take a severance package from my employer, how will it be taxed?
It depends on your tax bracket. For instance, if your employer offers you a payout of $100,000, you will owe federal tax of $35,000. You may also owe estate tax.
It may be best to check with your tax professional; he or she may be familiar with your tax rate and know whether any other taxes will apply.
For related reading, see Negotiating Severance Agreements.
This question was answered by Denise Appleby
(Contact Denise)
It may be best to check with your tax professional; he or she may be familiar with your tax rate and know whether any other taxes will apply.
For related reading, see Negotiating Severance Agreements.
This question was answered by Denise Appleby
(Contact Denise)
by
Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.
With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
