I have read many posts from several different sites and still confused....
My old company where I had 10 years of retirement service has made a Lumpsum distribution offer for $176,600 giving me option of direct roll over to IRA(Roth & traditional) OR Cash payment.
My current employer has reduced my pay by 10% due to Covid downturn so i do qualify under CAES for 3-year deferred tax treatment for $100,000.
What I want to do is roll over entire $176,600 to Roth while taking advantage of 3 - year tax deferment...i.e.
Roll over entire $176,600 in 2020 to Roth.
While claiming only $76,600 + 1/3 of $100,000 as income this year (it may be complicated form that i would have to fill but net effect would be this)
Add 1/3 of $100,000 as my income in subsequent 2021 & 2022 tax years.
I have opted for Cash payment to me so that i would have maximum flexibility.
Question #1: Is That possible and How?
Question #2: Assuming answer to 1st is yes, What will be addition to my taxable income for state taxes:
Same as federal i.e. $76,600 + 1/3 of $100,000
OR entire $176,000 will be added
Thanks.
Talat
