10 YEAR AVERAGING | Ed Slott and Company, LLC

10 YEAR AVERAGING

IN 1995 MY OLD PENSION PLAN DISTRIBUTED A TAXABLE PORTION AND
A PORTION ROLLED INTO MY 401K PLAN.I WAS 65 AT THE TIME.I WAS A PARTICIPANT FOR 5 YEARS
BEFORE THE DISTRIBUTION AND WAS BORN BEFORE 1936. iF i TAKE A DISTRIBUTION THIS YEAR
,THEN, MAY I ELECT 10 YEAR AVERAGING.

THANKS!

  • See the 9th bullet on p 21 of Pub 575 here:   http://www.irs.gov/pub/irs-pdf/p575.pdf
  • It appears that the 1995 rollover has eliminated your option to do a qualified lump sum distribution and use the 10 year option in any later year. It does not matter that the 1995 distribution was done after 5 years in the plan. All those bullet points in Pub 575 apply separately, so there are several separate limitations which must be met to have a qualified LSD.
 

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