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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

My employment was terminated 6 years ago. I'm just now eligible for distribution but now they saying they will pay me in 5 years installments. So after waiting for 6 years, now I got to wait another 5 to get it all? Can they do this?