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Old 10-31-2004, 10:29 PM
bigdeal99
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Protecting a lumps sum settlement

I live in Utah. I am just about to receive a lump sum settlement from a previous employer as a severance that I was legally entitled to. The amount is approx. $30k. What is the best thing I can do with it to pay as little in taxes? An IRA for my wife and I? What else? Any suggestions would be great! Thanks.
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Old 10-31-2004, 11:49 PM
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If the money is paid to you as salary, it is income the year you receive it. You can each put $3000 into an IRA, assuming you meet the other requirements. If the money is paid to you as a retirement fund payout, you can roll the entire amount over into a traditional IRA & pay no taxes.
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