re: Pension Lump sum question

Have you looked into whether the monthly payments from the pension would cover your mortgage and then last long enough to pay the mortgage balance? This should help reduce your tax hit this year, and when you are fully retired you can then revisit taking larger sums out at a lower rate.

But you may want to talk to an advisor about how this could impact your future tax implications, especially with SS & Medicare. Your answer could end up being, take out enough for the next 5 years to cover your note; then a lump sum the first year after you retire.