Skip to main content

1 reply

Employee
July 17, 2020

A lump-sum distribution is the distribution or payment within a single tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans).

 

See this: 

https://www.irs.gov/taxtopics/tc412#:~:text=A%20lump%2Dsum%20distribution%20is,%2C%20or%20stock%20bonus%20plans).