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gussmae-1
New Member

I did not receive a lump sum. Why is it asking for this information ?

 
1 Reply
MaryK1
Level 9

I did not receive a lump sum. Why is it asking for this information ?

If you are receiving regular payments you do not have to worry about the lump sum, however-

Lump-sum distributions can kick you up into a higher tax bracket.

  • For example, if in retirement you have $9,000 per year in taxable income, you'd likely be in the 10% tax bracket in 2017.
  • But if you take out a $200,000 lump-sum withdrawal, you'd probably find yourself in the 33% bracket.

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