By allowing this exchange, the IRS permitted the beneficiary to exchange the entire pre-tax value of the inherited annuity, rather than requiring that she take a lump sum distribution
of the inherited annuity interest, pay taxes on this distribution and then purchase the replacement annuity contract with the after-tax value.
Some of these retirees who have traditional defined benefit pension plans will face a decision: Start their monthly pension, or take a lump sum distribution
and roll it over to an IRA?
The payment was a lump sum distribution
of the entire balance of Frantz's deferred compensation arrangement, which was approved by Alltel before it was spun off from Windstream, according to the proxy statement.
By taking a lump sum distribution
, the assets in your plan are distributed directly to you, providing you with immediate access to your funds.
A taxpayer took a lump sum distribution
from an annuity and suffered a loss in value.
Muller look at some of the factors influencing the decision to take and how to use a lump sum distribution
In Darby (97 TC 51 (1991)), the Tax Court held that a lump sum distribution
to a nonparticipant spouse, who had no right to the money until the court assigned it to her in the divorce, was taxable to the participant spouse.
In general, a lump sum distribution
is a distribution within one taxable year of the account balance or accrued benefit of the participant.
402(e)(4)(B), discussing the election of 10-year averaging, stated that "no amount which is not an annuity contract may be treated as a lump sum distribution
Of course, the spouse can take a lump sum distribution
of the IRA.
A lump sum distribution
is a payout of a participant's entire interest that meets certain conditions.
From a participant perspective, the decision to receive a lump sum distribution
is completely voluntary.