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jrr7 writes:

I seem to vaguely recall some provision that if you took a lump-sum distribution from a retirement plan, you could spread out the tax payments over several years. You might want to research that.

Income averaging of lump sum when everything has been disributed by an employer from from the same type of plan (i.e., defined benefit or defined contribution)in the same year is now available only to those who were age 50 or older on January 1, 1986. Those folks may use ten-year averaging as described in IRS Publication 575 (Annuity and Pension Income) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html. For everyone else, income averaging is no longer available.

Regards..Pixy

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