Payment of the entire balance in a participant’s account within his/her taxable year. The distribution is generally only considered a lump-sum distribution if it is paid as a result of the death of the participant, as a result of the participant’s separation from service, or after the participant reaches age 59 and 1/2. A-H R-Z mandatory 20 percent withholding If a distribution from a section 401 qualified plan is an “eligible rollover distribution” and the participant does not make a direct rollover, 20 percent of the distribution must be withheld for federal income taxes. Participants cannot elect a lower rate of withholding, even if they intend to make a rollover within 60 days of the distribution.
What you get when you withdraw all your money from your retirement plan in the same year.
A type of distribution that is required for purposes of using the forward averaging method in computing the income tax that is due. The basic requirements to qualify as a lump sum distribution are (1) the distribution must be made within one taxable year of the recipient, (2) it must include the entire balance credited to an employee's account, and (3) it must be made on account of an employee's death, separation from service (except in the case of a self-employed person), or attainment of age 59-1/2 (or in the case of a self-employed person only, on account of disability).
a benefit payment arrangement under a qualified retirement plan wherein the participant receives the full plan benefit within one taxable year generally after death, disability, attainment of age 591/2, or separation from service; eligible for favored tax treatment for certain grandfathered recipients
Payment of an amount at one time rather than in installments. Usually refers to retirement plan distributions.
a payment, within one calendar year, of the entire amount payable from TRS on account of the deceased member
a payout of your entire balance from all of your qualified retirement plans of one kind (e
A payout of an employee's entire balance in a tax-qualified retirement plan within one year, on account of the employee's death, disability, or separation from service, or upon the employee's attaining age 591/2. A qualifying lump-sum distribution may be subject to favorable tax treatment.
A single payment to a beneficiary covering the entire amount of an agreement. Participants in Individual Retirement Accounts (IRAs), pension plans, profit-sharing, and executive stock option plans generally can opt for a lump-sum distribution if the taxes are not too burdensome when they become eligible.
A lump-sum distribution is a one-time payout of assets in an account, typically a retirement savings account. When you retire or change jobs, you can take a lump-sum distribution as cash, or you can roll over the distribution into an individual retirement account (IRA). If you take the cash, you owe income tax on the full amount of the distribution, and you may owe an additional 10% penalty if you're younger than 59 1/2. If you roll over the lump sum into an IRA, the full amount continues to be tax deferred, and you can postpone paying income tax until you withdraw from the account.
Payment within one taxable year of the entire balance payable to an employee from a trust which forms part of a qualified pension or employee annuity plan on account of that person's death, separation from service or attainment of age 59. X Y Z NTHONY TEUER NSURANCE ERVICES
The withdrawal of an individual's pension benefits or retirement savings all at once in one payment.... read full article
distribution from a qualified retirement plan of a participantâ€(tm)s vested balance within one taxable year. To be considered a qualified lump-sum distribution, it must be made because of the employeeâ€(tm)s death, attainment of age 59 Â1/2, separation from service, or disability.
The distribution at retirement of a participant's entire account balance within one calendar year due to retirement, death or disability.
The payment within a single tax year of the entire balance of your interests in all of an employer's pension or profit-sharing plans. To qualify as a lump-sum distribution (and for favorable ten-year averaging), other requirements must be met.
The disbursement of the entire value of a profit-sharing plan, pension plan, annuity, or similar account to the account owner or beneficiary. Lump-sum distributions may be rolled over into another tax-deferred account.
A one time payment for the entire amount due, rather than breaking payments into smaller installments. Some lump-sum distributions receive special tax treatment.
A distribution of the participant's entire shares in a retirement plan within one tax year. When this is done, it's important to expect the tax consequences of either a rollover to another qualified plan or to accept current taxation under a special 5 or 10-year averaging method. Under TRA-86, persons at least 50 years old on 1-1-86 will be eligible for either 10-year averaging of 1986 income tax rates or 5-year averaging at the new income tax rates, without regard to attainment of age 59 1/2. Always check current tax codes for current rules.
The withdrawal of an individual's pension benefits or retirement savings in the form of a single payment or lump sum. All, or any part, of a lump-sum distribution can be used to establish a rollover IRA.
A single payment of all retirement money from an account, usually given when an investor leaves a company or retires. Prior to retirement, lump-sum distributions are usually rolled over into another retirement plan or into an IRA. In certain situations, there are tax consequences when an investor takes a lump-sum distribution. Investors should consult a financial professional to discuss the taxes that may apply to any action involving a lump-sum distribution.
A single payment that represents an employee's interest in a qualified retirement plan. The payment must be prompted by retirement (or other separation from service), death, disability, or attaining age 59½, and must be made within a single tax year to avoid the federal government's 10 percent penalty tax.
The payment of an entire amount due within one tax year rather than in installments. The distribution is usually triggered by such events as retirement or death.
In a qualified retirement plan, the distribution of a participant's entire account balance (under a defined contribution plan) or of the entire value of a participant's accrued benefit (under a defined benefit plan) as a single cash payment. Always subject to certain legal restrictions. There are significant tax consequences for premature withdrawals.
The distribution at retirement of a participant's entire account balance. Matching Contribution A contribution made by the company to the account of the participant in ratio to contributions made by the participant.
The payment within one year of the full amount of your interest in a pension or profit-sharing plan. To qualify as a lump-sum distribution — and for favorable ten-year averaging — other requirements must be met.
Payment of the entire amount due at one time rather than in installments. Such distributions must come from qualified employer plans. The recipient of a lump-sum distribution may be eligible for special tax treatment of the distribution.
A single payment that amounts to the entirety of a retiree's interest in a qualified retirement plan. Severe tax consequences apply to receiving a lump-sum distribution without retiring (or otherwise being separated from employment). See Managing Your Retirement. A - C | D - G | H - L | M - O | P - R | S - T | U - Z Contact Customer Service