Pension Cash-Outs Trigger Huge Tax Bills | Leeds News

Big pension withdrawals are triggering massive tax bills—over 390 people cashing out $250K+ paid nearly $100K each in taxes, while 1,772 others who withdrew $100K–$249K paid at least $27K. The problem? Anything over the 25% tax-free threshold gets taxed as income, quickly pushing withdrawals into the 45% bracket. What seems like a windfall can leave you with far less than expected. Experts warn that while taking it all at once feels simple, it’s often the most expensive tax-wise. To avoid surprise bills, spread withdrawals over time and consider how state pensions eat into your tax-free allowance. Small changes in timing can save thousands—and keep more of your hard-earned savings for when you need it most. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/ca52a434ebe6bb07