Lump Sum Pension Distributions
The Lump Sum Pension Distribution module helps a client understand their defined contribution pension distribution options when leaving an employer or just moving their plan. The module illustrates net distribution (after-tax) and/or potential annual income from three distribution options: Spend It Now, Income Annuitization, and spend It Later. This is a great module to use to help capture a client’s retirement plans.
Module Target User – Advisors
Completion Time – 5 to 15 minutes
This module:
- Illustrates three options for pension distributions: Spend It Now, Income Annuitization, Spend It Later
- Calculates income taxation and applicable tax penalties for each option
- Compares potential after-tax income for each option side-by-side