Forward Averaging

Forward Averaging
Treating lump-sum retirement-plan distributions as if they occurred over a five- or ten-year period. Forward averaging is available only to qualified plan participants who were born before 1936 and meet certain requirements.

This treatment results in the distributions being taxed at a lower rate than the individual's ordinary tax rate.

To be eligible for the capital gains and forward averaging treatment, qualified plan distributions must be in the form of a lump-sum distribution.

Note: The five-year income averaging is repealed for taxable years beginning on or after January 1, 2000.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • forward averaging — A method of calculating taxes on a lump sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate. Bloomberg Financial Dictionary …   Financial and business terms

  • Forward error correction — In telecommunication, information theory, and coding theory, forward error correction (FEC) or channel coding[1] is a technique used for controlling errors in data transmission over unreliable or noisy communication channels. The central idea is… …   Wikipedia

  • Dwight Howard — Howard in 2011 No. 12    …   Wikipedia

  • Larry Johnson (basketball) — Infobox NBAretired name=Larry Johnson width= position=Forward number=2 birthdate=birth date and age|1969|3|14 Tyler, Texas, USA debutyear=1991 finalyear=2001 draftyear=1991 draftround=1 draftpick=1 college=Odessa, UNLV teams= * Charlotte Hornets… …   Wikipedia

  • Dominique Wilkins — No. 21, 12 Small forward Personal information Date of birth January 12, 1960 ( …   Wikipedia

  • Tiffany Jackson — WNBA s Tulsa Shock  – No. 33 Forward Born April 26, 1985 (1985 04 26) (age 26) Nationality …   Wikipedia

  • Andrew Brackman — (born December 4, 1985) is a 6 10 right handed Minor League Baseball pitcher with the New York Yankees organization. [ [http://www.minorleaguebaseball.com/milb/events/draft report/y2007/index.jsp?mc=brackman Draft Report for Andrew Brackman] ] He …   Wikipedia

  • Conduit IRA — A traditional IRA that holds only assets that were distributed from a qualified plan. Typically, the intention of using this type of plan is to store assets until they can be rolled into a new employer s qualified plan. Should any other assets be …   Investment dictionary

  • Utah Jazz — For the drum and bass musician, see Utah Jazz (producer). Utah Jazz 2011–12 Utah Jazz season …   Wikipedia

  • Charles Barkley — For other people named Charles Barkley, see Charles Barkley (disambiguation). Charles Barkley Barkley with the Philadelphia 76ers in 1991 No. 34, 32, 14, 4 Power forward / Small forward …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”