If you retire Dec 31 you would not get the payout until January at the earliest and it would be considered taxable income in 2022. If you retired Nov 30 you might get it in December and then it would be taxable income in 2021. My understanding is it comes pretty much in the form of a paycheck and is taxed as such. Retirees may be able to shed some more light for you. Good Luck and Congrats!
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