<prompt> Human: It looks like I am getting 100k. I have about 68k of debt ranging from 10 to 2.5. Should I pay off all debt?Also is this money going to be taxed? In the paper work they say they automatically take off 20 for federal taxes. I have read some conflicting answers about whether or not this is going to be taxed. If it is taxed is there a way to avoid being taxed?Thank you.Edit: I live in Wisconsin and so did my father.  <response>: I couldnt find anything specific, but the pension would have been table to your father, it it should be taxable to you. If you take it as a lump sum, this would put you in a pretty high tax bracket. You likely can choose to have it spread out over your life, or x years. This is called annuitizing. If you annuitize remember to set up your own beneficiaries. 