You should ask your accountant or other tax professional for help in comparing the amount of taxes you would pay under the options outlined above. But there are a few other tax considerations to keep in mind as you make your decisions:

• Don't forget the 10% early withdrawal tax penalty. It generally applies when you receive a lump sum distribution prior to age 59½ and do not transfer it directly to an IRA or other qualified plan. Specific exemptions may be made for withdrawals due to death, disability and certain medical expenses or if you separate from service from your employer at age 55 or older.
• Money contributed to your retirement plan on an after-tax basis will come to you tax-free. All earnings on this money, however, are subject to ordinary income tax. When you leave a company or retire, you should be provided with a statement of your account outlining pre- and post-tax contributions.
• Tax laws are subject to change. Always consult with a tax professional on the latest rules.
• Consider state and local taxes. Some states exempt pension income; other states may tax it. Consult a tax professional for the laws in your area.