Lump Sum

Is it good to get an IRS refund check, or should workers pay just enough income tax to break even at year-end?That question has been the topic of great debate between Robin Scott-Reese and Laimondo Trowell, a couple from Trevose, Pa.Ms. Scott-Reese says IRS refunds are no bargain. It simply means you paid too much income tax during the year, she says, and that deprives you of money that could have been saved or invested.Mr. Trowell, however, sees things differently. To him, an IRS refund is like a savings plan, except it pays no interest.

NEW YORK -- AT&T Corp. announced a giant job cut last week. Over three years, some 40,000 people will hit the streets -- some in early retirement, others frantically hunting for work.By now, a census of downsized workers should turn up enough to populate a small country. In most cases, they left the job with money in hand -- not just severance pay but also a payout from the retirement plan.Displaced workers usually have a choice about how to handle retirement funds.If you are among them, your employer should give you a bye-bye packet, explaining the options offered by your particular plan.

Q. My husband is interested in giving a gift annuity to his alma mater. I do not know or understand the ramifications of this, or whether it is a good thing to do. A. With a gift annuity, you make a lump-sum donation to a charity (for example, a hospital or school) and in return receive an income for life. Most people become aware of gift annuities through newspaper ads pitching what seem like high interest rates that magically go up with age, such as 5.7 percent at age 60 and 8 percent at age 80. I have occasionally come down on these ads because some use the term "interest rates" or "yield" to describe payout rates that are only part interest (the rest, often the bulk of each payment you receive, is the return of your own principal)

The Consumer Credit Counseling Service of Maryland and Delaware has some left over grant money and is using it to provide reverse-mortgage counseling for free until Aug. 31. Such counseling usually costs $125. If you've been thinking of getting a reverse mortgage, you can call 1-866-731-8486 to make an appointment for counseling in person or over the phone. This deal is available to U.S. citizens in all states except for South Carolina and Massachusetts. A reverse mortgage allows homeowners age 62 and up to tap the equity of their home.

NEW YORK -- Marriott International Inc., CVS Corp. and 40 other companies that hire low-wage workers are urging their employees to collect a tax break in their paychecks rather than paying fees for tax-preparation services and loans to get it as a lump sum once a year. The group, representing businesses employing 4 million people, is distributing flyers, stickers, posters and other educational tools to company managers to encourage employees to sign up for the little-used version of the earned income tax credit.

A union representing 650 reporters, editors, circulation employees and other workers at The Baltimore Sun Co. approved a three-year contract late Saturday, averting a strike but leaving some members unhappy with the deal.The Washington-Baltimore Newspaper Guild voted 269 to 97 to approve the contract after company negotiators agreed Saturday to delay higher employee contributions for health coverage and to restrict the company's ability to assign Guild-covered work to outside contractors.

Its promoters say Maryland's Prepaid College Trust is a great deal, but a lot of parents apparently haven't gotten the word.The first sign-up for the state-supported college savings plan drew to a disappointing close yesterday, with about 1,050 applications received by midafternoon.Ellen Markowitz, the program's administrator, said she expected a flurry of last-minute applications to arrive in the mail early next week.The enrollment period, which began in April, was extended by a month to allow more time for promoting the trust.

By the time a company offers a buyout to large numbers of employees, you can be sure lawyers, management consultants and out-placement counselors have pored over the package. Key financial and legal terms usually aren't negotiable, but companies are willing to make minor concessions that cost them little or nothing, says Alan Downs, author of the book "Corporate Executions" (AMACOM), who once specialized in designing layoff programs.Here are items companies may be willing to negotiate about:Deadlines.

Seeking to speed the end of the state's almost 400-year history as a tobacco producer, Gov. Parris N. Glendening will propose legislation to make the state's buyout program more attractive to the 40 percent of Southern Maryland farmers who have yet to sign up. As part of the bill, the governor will also ask the General Assembly to create an estimated $20 million agricultural land preservation fund to purchase development rights from farmers who end...

DEAR JOYCE: I've just received a managerial position in a company too small to send me to executive continuing education at Harvard or to another prestigious program like the Center for Creative Leadership. Still, I recognize that I need to improve my ability to persuade and negotiate with others to back my proposals. What can you suggest? -- H.S.G.Loretta D. Foxman, a leading career counselor, has looked into this issue in detail. Writing in Personnel Journal, the president of the Chicago-based Cambridge Human Resource Group Inc. says you can read your way to persuasion expertise, hire a personal coach or attend classes and seminars.