Foreign Pension Lump Sum Payment Taxation. Rules for Contributions Made While Nonresident.

I did get some more details, and the short answer is that it depends on the country and the kind of pension, so you will really need to talk to a tax advisor specifically on your situation.

@NycTaxPension You are correct, it is a good idea to speak to someone outside of TurboTax with regards to foreign pensions since it could be a legal question. This type of question is very important indeed, yet can also be considered out of scope.

Keep in mind, if this is a foreign pension that we're talking about, you'd have to report it on form 8938 if the total aggregate balance of foreign accounts reaches $10,000 during the year.