Lump-sum distributions from retirement plans are desirable when their special tax savings (capital gain treatment on some, ten-year tax averaging on some) are favorable when compared with taxes that may be due if the distributions were rolled over to an IRA and taxed later. Someone who needs ...
postponing any taxes.For some people over age 59 1/2, the Internal Revenue Service offers two other options: five-year and 10-year "forward averaging," a system that lets you take all your money immediately but pay tax on it as though you'd parceled it out over five or 10 years. Th...