Claiming a lump sum credit is optional. You can decline it. if you claim it, you have to give up any future retirement income credits (up to $200 per year).
Many people who ask about it are not
eligible. For example, leaving your employment and cashing out your 401k or TSP does
not qualify.
There are two separate OHIO lump sum credits.
One, the "Lump Sum Distribution Credit is only for people over 64 and you
must have taken out everything in the company plan and you must have left the company.
The other, the Lump Sum
Retirement Credit, is for any age but you must have actually retired from your
company, and taken your entire account as a lump sum.
