Can I prepay taxes I will owe on a lump sum pension payout, so that I don't cause tax consequences for the next year? We received a letter from my husband's former employer offering a lump sum payout of his pension. We know that it's not a great idea to cash this out rather than roll it over. However, we have about a million dollars in other retirement assets but we are very cash poor and need money to send my son to college. I understand they will take 20% off the top but my tax burden will be higher. What should I be aware of? |