Can I Receive a Lump Sum Payment?

Q. John A. of New Jersey asks: "Can I Receive a Lump Sum Payment?"

A. Evan, from the QDRO Department of Pension Evaluators & QDROS Of Troyan, Inc Associates Group replies: "As a general rule, plans which have account balances (for example, a 401(k) savings plans, 403(b) tax sheltered annuity and profit sharing plan) will allow an immediate taxable lump sum cash distribution to an alternate payee. However, very few pension plans pay lump sums since they typically only pay monthly lifetime benefits."

Evan Edelstein

Lead QDRO Analyst

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