You could choose to only take the 25pc tax-free lump sum, leaving the remainder of your pension invested. When you withdraw the remaining funds, they will be taxed as income.

There are also tax considerations that will play into your choice. Pension income is taxed as ordinary income, whereas a lump-sum amount can be rolled over to an IRA and avoid immediate taxation ...

When your pension matures, there are multiple distribution options that you can choose from. Unfortunately, many of these distribution methods result in a tax liability that reduces your payout.

In Figure 1, I compare a lump-sum offer of $500K to the 100% joint survivor pension option, which is $25K a year. Single investors use the single-life pension payout. The formula in this case ...

Dear Quentin, When I leave my job, would I be better off taking a $61,000 lump sum to roll over into an existing IRA or, ...

Tax implications: Lump sum distributions are subject to income tax. ... For example, you might choose to take 30 percent of your pension as a lump sum and convert the remainder to an annuity.

The Internal Revenue Service (IRS) recently issued two significant notices for employers that sponsor defined benefit pension plans, particularly those considering lump-sum windows as a “de ...

We had a client who had a $600,000 lump sum pension. If they did not take the lump sum, then they would receive $3,000 a month for the rest of their life but would pass nothing on to a beneficiary.

One of the most significant decisions anyone with a pension can make is taking a lump sum (annuity) versus receiving monthly payments. At some point, you’ll have to make a decision, and this ...

We had several clients (and new ones seeking guidance on this decision) ultimately push retirement up by 1-2 years because if they didn’t take the lump-sum offer ASAP, for example, a lump-sum ...

As employers continue shifting pension responsibilities to workers, a new question has surfaced: Should employees take their pensions as annuities or lump sums?