Hey, welcome to Roger that, where we want you to not just have a great retirement, but we want you to have a great life. We're here to try to help you. Now, we have another listener question this week, and it comes from Al, who's a long-time listener of the Retirement Answer Man podcast. So, Al, I appreciate you and thanks for the question. He says he is just about to retire, but the company he works for has some financial problems. He does have a retirement plan that is now 80% funded. So, he wants to know the advantages and disadvantages of taking the lump sum versus the monthly payments of the pension. He also mentioned that he left my book on the cruise ship, and he wants another one. Well, Al, don't worry, I've already put it in the mail for you. So, talking about pensions, what exactly is a pension? A pension is a promise from a company that, after years of service, they will guarantee to pay you a certain amount for the rest of your life. It's something that many baby boomers had, but it has been quickly replaced by the 401(k) over the last few decades. Now, Al has a pension that is 80% funded. So, what does that mean? When a company promises a pension, they need to have enough money set aside to meet the obligations to all the workers. However, there are accounting rules that allow pensions to be funded at lower percentages. According to the Milliman Pension Funding Study of 2017, the largest 100 companies have a funded pension amount of about 82%. So, 80% funding level is considered acceptable, as it means the company has put enough money aside to meet about 80% of the obligations. The idea...
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What qualifies as a lump sum distribution Form: What You Should Know
Lump-Sum Distribution Definition — IRS All or part of what you have contributed from date of enrollment to date of distribution. Lump-Sum Distributions — Minnesota FOR What Is a Qualified Lump-Sum Distribution? It is the distribution or payment in 1 tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans) in which the employee had funds. What Is a Qualified Lump-Sum Distribution? It is the distribution or payment in 1 tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans) in which the employee had funds. What Is a Qualified Lump-Sum Distribution? It is the distribution or payment in 1 tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans) in which the employee had funds. What Is a Qualified Lump-Sum Distribution? It is the distribution or payment in 1 tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, Lump-Sum Distribution Definition — IRS All or part of what you have contributed from date of enrollment to date of distribution. Lump-Sum Distributions — Minnesota FOR What Is a Lump-Sum Distribution? It is the payment within a single tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, stock bonus) in which the participant had funds. What Is a Lump-Sum Distribution? It is the payment within a single tax year of a plan participant's entire balance from all of an employer's qualified plans of one kind (for example, pension, profit-sharing, stock bonus) in which the person had funds. What is the difference between a deferred pension plan and your personal retirement account (PRA)? Deferred pension plans may provide a larger (or more frequent) amount of pension or pension annuity income, and can also provide additional cash, such as money that can be used to offset a distribution to your account.
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