Lump Sum Distribution
Does the definition of a Lump Sum Distribution – A lump-sum distribution is the distribution or payment within a single tax year of a plan participant’s entire balance from all of the employer’s qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans). – mean that if the participant has a 401k plan and a Profit Sharing plan that the LSD definition applies to each of those separately or are they combined under the definition. Normally, I would expect Profit Sharing to be part of 401k, but if they are separate plan types that would be good for NUA strategies that require LSD. – m
Permalink Submitted by Alan - IRA critic on Fri, 2022-06-24 14:17
Permalink Submitted by [email protected] on Fri, 2022-06-24 16:27
thank you. -m