Defined Benefit Plan participants can split payout between lump sum and annuity

The IRS just finalized a proposal to allow defined benefit (DB) participants to take their retirement benefits as a combination of an annuity (traditional regular monthly payments) and a lump sum. this change in IRS policy allows much more flexibility for DB retirees. Read the details in the Journal of Accountancy.

Sally P. Schreiber, J.D.Sally

http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html

The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf

The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf

The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf

Defined benefit plan participants will have greater flexibility in choosing how to receive their pension benefits under final regulations issued by the IRS (T.D. 9783). The regulations finalized proposed rules issued in 2012 that permit participants to elect to receive split benefits of monthly annuity payments together with a lump-sum payout without disqualifying the plan. The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf

Defined benefit plan participants will have greater flexibility in choosing how to receive their pension benefits under final regulations issued by the IRS (T.D. 9783). The regulations finalized proposed rules issued in 2012 that permit participants to elect to receive split benefits of monthly annuity payments together with a lump-sum payout without disqualifying the plan. The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf

Defined benefit plan participants will have greater flexibility in choosing how to receive their pension benefits under final regulations issued by the IRS (T.D. 9783). The regulations finalized proposed rules issued in 2012 that permit participants to elect to receive split benefits of monthly annuity payments together with a lump-sum payout without disqualifying the plan. The IRS believes plan participants are better served against the possibility that they will outlive their retirement benefits when they can choose to bifurcate their benefits between the two options. - See more at: http://www.journalofaccountancy.com/news/2016/sep/defined-benefit-plan-split-distributions-201615151.html#sthash.M0ZlifIM.dpuf