USA Severance Packages - least amount of tax

[Maz]

Hi there,

Is there a way that before i get a severance package - which if sent directly to me, will be taxed at 40% - is there a way that i can roll this over into an Roth IRA or even a traditional IRA so it's not taxed as heavily?

Thanks.

 

[pndaccountants]

Depending on your employment conditions, for example amounts your employer is required to pay under the industrial agreement or employment contract, a genuine redundancy payment may include:

payment in lieu of notice
severance payment of a number of weeks' pay for each year of service
a gratuity or 'golden handshake'.