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.
References in periodicals archive ?
Selling the Heifers first saw 55 animals reach PS1,000+ with the 107 forward averaging PS976.
It seemed Perez was the missing link in Robinson's quest to turn the Pirates' ship around with the forward averaging 19.
General Forward Averaging Unlike block averaging and general income averaging, which are backward looking, general forward averaging is a forward-looking approach.
Mickey Harte's side reached the All-Ireland semi-finals in 2013 and 2015 without a forward averaging six or seven points per game.
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.
Lambs: A larger show of lambs forward averaging 115.
It can be reported using 10-year forward averaging if the client participated in the plan for at least five years.
Special tax treatment under the five-year or 10-year forward averaging rules may be available to further reduce the amount of tax due on the distribution.
If you're older, you could get a break, because you may be eligible for favorable tax treatment under forward averaging rules.
Money in an IRA-SEP, however, isn't eligible for 10-year forward averaging.
Full browser ?