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 attainment of age 59-1/2, and must be made within a single tax year to avoid the federal government's 10% penalty tax.


Do you need a Financial Planner?

Click here to get matched to financial planners near you. Free service.

Get Started Now



Here are 10 random terms from our database: