Taken a Pension Lump Sum Recently? Getting Ready to Do so Soon? If so, This Article Is a Must Read for You
In the pension world, there are two basic types of pension plans: (1) defined contribution (DC) (e.g., 401k) which establish an account for each participant, provide a benefit based on the investment performance of assets allocated to the account, and pay the benefit in a lump sum form (i.e., the account balance), and (2) defined benefit (DB) which provide a benefit based on a formula defined in the plan, but typically provide only annuity benefits, although some DB plans DO…