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Preparing My Taxes
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  - 2012 Tax Law Changes: We've Got You Covered!
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What rules apply to a lump-sum payment?

Updated: 1/21/2013

Article ID: IAS10014

A lump-sum payment is the distribution or payment in one tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans). If your 1099-R Form, box 7 code is A, then special rules can apply to figure the tax. Use the TurboTax Help Menu in the tool bar to access IRS Pub 575, Pension and Annuity Income, 10-Yr Option, for details.

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