Lump-Sum Distribution

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August 25, 2024 4 min read Definitions

Lump-Sum Distribution: Payment of the Entire Amount of Retirement Benefits at One Time

Finance Retirement Planning Lump-Sum Distribution Retirement Benefits Pension Plans Five-Year Averaging IRA Rollover

A Lump-Sum Distribution involves the payment of the entire amount of retirement benefits in a single payment, rather than in periodic installments.

August 25, 2024 3 min read Definitions

Ten-Year Averaging: Income Tax Calculation on Lump-Sum Distribution

Taxation Finance Income Tax Lump-Sum Distribution Qualified Benefit Plan Tax Liability Retirement Planning

A method of calculating income tax on a lump-sum distribution from a qualified benefit plan that reduces a beneficiary's tax liability. Available only to participants who were 50 years old by January 1, 1986.