Can I Receive a Lump Sum Payment?
Posted on Mar 12, 2014 6:09am PDT
Q. John A. of New Jersey asks: "Can I Receive a Lump Sum Payment?"
A. Evan, from the QDRO Department of Pension Evaluators & QDROS Of
Troyan, Inc Associates Group replies: "As a general rule, plans which have account balances (for example,
a 401(k) savings plans, 403(b) tax sheltered annuity and profit sharing
plan) will allow an immediate taxable lump sum cash distribution to an
alternate payee. However, very few pension plans pay lump sums since they
typically only pay monthly lifetime benefits."
Evan Edelstein
Lead QDRO Analyst
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