The payout option you elect is probably one of the most important decisions you'll ever make. That's because your decision is irrevocable. Understanding your distribution options is crucial to your planning.
Retirement Plan Distribution Options
With a defined-benefit plan, your employer may give you a choice of a fixed monthly payout known as an annuity, a lump-sum distribution, or a combination of both. With a defined-contribution plan, you may be able to exercise these options:
SUGGESTION: If you have both a defined benefit plan and a defined contribution plan and don't need all the income at once, consider taking an annuity payout from your defined benefit plan and letting your money grow tax-deferred in the defined contribution plan.
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