Mary wants to take a lump sum payout from one of her three benefits plans. Which plan can she use the lump sum distribution option?

Question

Quizplus · Accepted Answer

Lump sum options exist in money purchase plans and target benefit plans. There must four conditions to satisfy the lump sum distributions: 1) must be distributed in one taxable year 2) must represent the full account balance to the participant's credit from all qualified plans of a single type 3)59 ½ years of age, death, separation from services or disability 4) must be from a qualified plan of either a money purchase plan or target benefit plan.

Mary Wants to Take a Lump Sum Payout from One