Q: If have more than 240 hours of annual leave when I retire, will I be allowed to cash that amount in also, or will I have to take the leave before retirement? If I retire at the end of a calendar year, will I be able to cash in my annual so that it is taxed the following calendar year? Obviously, I do not want to cash in the same year as my retirement year.
A: If you retire before the new leave year begins – January 1, 2012 – you’ll receive a lump-sum payment for all your annual leave, which will be taxable in the year it is received. In your scenario, that would be 2012.
