Othersfear that it couldtakeyears for the extentof the economicblow to be known, makingitdifficult tofigure outwhether a payoutnegotiated now willmakethemwhole.
To figure the five-year-averaging tax on a lump sum payout, you first determine how much a single taxpayer would owe if one-fifth of the lump sum represented all his taxable income for the year.