A method of calculating taxes on a lump-sum distribution from a qualified retirement plan, enabling one to pay less than one's current tax bracket.

An option for some 401 plan participants who elect to receive a single, large, lump-sum distribution payment. Participants who are at least 59-1/2, have been in the plan at least 5 years, and have never used the provision previously may choose to treat the distribution as a 5 or 10 year event for tax purposes. Repealed effective for tax years beginning on or after January 1, 2000.

A method of calculating taxes on a lump-sum distribution from a qualified retirement plan that enables you to pay less than your current tax rate.

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