Retirement benefits are generally distributed in one of these three ways.(Qualified vs.Nonqualified Plans)

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Lumps sums, annuities, and periodic payments are the three most common ways in which retirement benefits are distributed. Lump sums provide the retiree with a one-time payment that can be used for any purpose, while annuities provide a guaranteed stream of income for life. Periodic payments provide regular income over a set period of time. These options ensure that retirees have flexibility in how they receive their retirement benefits and can choose the option that best fits their individual circumstances.

Retirement Benefits Are Generally Distributed in One of These Three