Lump sum

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Lump sum

A large one-time payment of money.

Lump Sum

A large amount of money one spends at once, especially to make a large purchase. For example, if a house costs $175,000, and the buyer pays the total amount up front, the buyer is said to make a lump sum payment.

Lump sum.

A lump sum is an amount of money you pay or receive all at once rather than in increments over a period of time.

For example, you buy an immediate annuity with a single lump-sum payment. If you receive the face value of a life insurance policy when the insured person dies, or receive the full value of your retirement account, those payments are also lump sums.

References in periodicals archive ?
55-percent cuts in 2018 'in the face of the continuing practice of lump sum budgeting.
Legislative provisions will be made to enable lump sums to be paid from 11 April 2016.
The new tables show that people are living longer, so when the IRS incorporates them, it will increase the cost of lump sums.
The report reveals that 55 percent of the workers who opted to receive a lump sum distribution from their employer-sponsored 401(k) plan rolled their money directly into a tax-qualified account.
The punitive 55% tax charge that currently applies to lump sum death benefits paid from drawdown arrangements will be abolished altogether.
There was talk of 'the second death of annuities' following the announcement; however, annuities with lump sum death benefits, such as value-protected annuities, will benefit from the changes.
In a paper, "The Illusion of Wealth and Its Reversal," researchers Daniel Goldstein, Hal Hershfield and Shlomo Benartzi attempt to answer the question, "Why do people more often choose the lump sum option instead of the annuity?
These lump sums are at the discretion of the President," he stressed.
Mr Webb said that as four-fifths of people already take a tax-free lump sum when they retire, giving them early access to the money wouldn't have a major effect on pension income.
Someone who invested pounds 50 a month into the average investment trust during the year to the end of April would have seen the value of their holding fall by seven per cent to pounds 558, considerably better than the 30 per cent loss to pounds 419 suffered by someone who invested a lump sum of pounds 600 in April 2008.
People who are interested primarily in reducing VA's workload and reducing government spending with total restrictions on reopening claims and deeply discounted lump sums have seen this as an attractive and easy way to do that," Violante said.
Unfortunately, this withdrawal of tax-free lump sums and continuing to make contributions is now a contentious area, under new rules brought in recently with A-Day.