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Pension beneficiary Questions

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bozeman
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Pension beneficiary Questions  Reply with quote  

ill make this short. Im the beneficiary to a pension with a nice chunk of money. (pre retirement survivor benefit)

I only have the lump sum option.

Anyway, here is my question because i am unfamiliar with it all.


The benefit commencement date was on August 1st. The company was notified of the passing in early july. Anyway, it took until Sept 20th for them to even tell me there was any available money in it, or that i was even the beneficiary to this. So i completed all paperwork and now they are telling me it is gonna take another 4-8 weeks to get the lump sum payment.

So in total it could be close to 5 months from when this all started to when i get the money.

Just want to know if this process and timeframe is normal. (there are no issues regarding an estate or anything, or paperwork)

There is a potential tax issue if this drags out into the new year, which i really don't want.

Potentially 5+ months from start to finish for this seems a bit long to me, but i really don't know anything about this process.

Thanks in advance for any replies.
Post Mon Oct 07, 2013 9:12 am
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oldguy
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quote:
There is a potential tax issue if this drags out into the new year, which i really don't want.


In the world of inheritances, 5 months is quick. The ones that I have first hand knowlwedge of (3) among my relatives each took about a year.

And there are good reasons - they do a search to locate any & all persons who may feel that they have a claim to a portion - and those go thru a 'discovery' process to assure if a claim could/should exist. After all avenues are cleared, then the actual money can be released. And you can then be certain that it is yours, no distant claims can show up a year later.

If you receive the funds after Jan 1 the taxes would be deferred for over a year - ie, April 15, 2015. Very Happy OTOH, if your personal tax rate changes drastically from 2013 to 2014 (new job, new grad, etc) you may take a hit.
Post Mon Oct 07, 2013 3:31 pm
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coaster
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Are there any tax offsets you can defer until next year? Deductions, capital losses, property taxes, etc; or is there other income you can accelerate into this year?

~Tim~
Post Mon Oct 07, 2013 4:05 pm
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