Should you contribute to these funds in one lump sum or via dollar-cost averaging at regular intervals throughout the year? Maxing out your annual IRA contributions is a strong way to save for retirement. The manner in which you do so also contains implications to consider. Wh...
If you take a lump-sum distribution, even using Form 4972, the retirement plan administrator typically withholds 20% of your withdrawal and sends it to the IRS on your behalf. If your ultimate tax liability is lower than 20%, you can claim that part back when you file your...
The present value and future value of a dollar is a lump sum payment. A series of equal lump sum payments over equal periods of time is called anannuity. This is a more general concept than the insurance product that most people think of when they see the wordannuity; it includes loans,...
The employer’s lump sum payout offer is a better deal for him.Example 2: white collar woman close to retirement.Our second worker is a woman (reduced risk of death at any given age), a white collar worker (again, longer-lived on average), and is much closer to retirem...