Dictionary of Banking Terms: lump-sum distribution
lump-sum distribution
single payment to an account beneficiary, for example, the beneficiary of a retirement account, as opposed to scheduled payments at regular time intervals. The holder of an Individual Retirement Account, example, can either reinvest the assets of the account in a rollover account, or the proceeds can be recognized as ordinary income, and taxed at an average rate over a 10-year period.
Dictionary of Business Terms: lump-sum distribution
lump-sum distribution
payment of the entire amount of retirement benefits due at one time rather than in installments.
