6 strategies to cut your income tax after a windfall  The money
you receive from sudden wealth -- whether through a lawsuit
settlement, business sale, entertainment or sports contract, or
stock options -- can suddenly be gone if you don't manage
federal and state income taxes. For example, let's consider a
$20 million lawsuit settlement. After 40 percent is paid to the
attorney and up to 54 percent is paid in federal and state
taxes, you may be left with closer to $5 million. While that's
still a windfall, you may be able to keep more by engaging in
one or more of the following windfall income tax planning ideas:
1. Create a pension. Don't be discouraged by the paltry IRA or
401(k) contribution limits. A defined-benefit pension can give
you the opportunity to shield an incredible amount of money from
immediate taxation. How much? A married 45-year-old may be able
to shelter up to $320,000, while a married 55-year old may be
able to shelter up to $530,000. This technique works best when
you can contribute ove