Talk:Lump sum vs pension

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By "pension" does this mean continuing to participate in a defined benefit pension plan?

Is the article comparing the choice of taking a lump sum in lieu of continuing to participating in a defined benefit pension plan? The lead sentence doesn't make this clear, I think there are some words missing. --Peculiar Investor 23:05, 19 January 2015 (CST)

Reader feedback: What are the tax implication... posted this comment on 19 January 2015 (view all feedback).

What are the tax implications of taking a lump sum?

Any thoughts?

LadyGeek 18:54, 20 January 2015 (CST)

Lump sum distributions from qualified pension plans (i.e. the plans most people participate in) are eligible for rollover to IRAs. Distributions from qualified plans not rolled over are subject to taxation, and may be subject to the 10% early distribution penalty, depending on age at distribution. Participants taking distributions after age 70 1/2 would be subject to required minimum distribution rules, and hence may be limited in the rollover amount. --Harold 19:00, 20 January 2015 (CST)