Forward averaging

Forward averaging

A method of calculating taxes on a lump sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate.

Forward Averaging

A former practice allowing certain pensioners in the United States to treat lump sum retirement plan withdrawals as if they occurred over a period of five or 10 years. This allowed qualifying retirees to pay only one-fifth or one-tenth of the taxes that they would otherwise have had to pay in a given year. Forward averaging was discontinued in 2000.
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Durant has been in ridiculous form of late, and pulled off a game-winning shot against the Atlanta Hawks in the last game, with the forward averaging a remarkable 38.
Leading the team scoring so far is the 5-foot-10-inch Meredith, a forward averaging 19.
Katie Brooks, a 5-foot-11 junior forward averaging a double-double, freshman point guard Brianna Barrett and sophomore forward Crystal Owusu lead Oaks Christian.
4,010 Prime sheep were forward averaging 112ppk or pounds 50.
It can be reported using 10-year forward averaging if the client participated in the plan for at least five years.
However, five-year forward averaging allows you to calculate your taxes as if you had taken the money out over a five year period of time instead of taking the hit all at once," says Margaret Malaspina, financial planning expert and author of the recently published book, Don't Die Broke: How to Turn Your Retirement Savings into Lasting Income (Bloomberg Press, 1999).
If you're older, you could get a break, because you may be eligible for favorable tax treatment under forward averaging rules.
Or, if you meet the age requirements, you may be able to use forward averaging to help cut the tax you owe on a retirement-plan distribution.
Holding opponents to about 27 points per game, Sutherlin returns nine seniors from last year's title team, including reigning state player of the year Tess Bennett, a 5-foot-10 forward averaging about 16 points per game.
Javaughn Espiritt, a 6-5, 185-pound forward averaging 12.
The 1996 act repeals a provision that allowed an individual who received a lump-sum distribution from an employer-sponsored retirement plan to elect a five-year forward averaging calculation.
An individual younger than 59-1/2 who takes the distribution - Ineligible for forward averaging, this person pays an initial federal tax of 41 percent, leaving $59,000 to invest, and faces an ongoing federal marginal tax rate of 31 percent on earnings.
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