A type of withdrawal from a qualified plan that may be eligible for favorable tax treatment It is a total payment in one taxable year of the entire balance in the Plan upon your termination of employment, retirement, disability or death
A lump sum is an amount of money that is paid as a large amount on a single occasion rather than as smaller amounts on several separate occasions. a tax-free lump sum of £50,000 at retirement age. an amount of money given in a single payment
Payment of a single, fixed amount at a specified date Lump sums are a term used in structured settlement designs (example, "At age 40, pay $25,000, while at age 50, pay $45,000") This term is also used to describe the funds that are paid at the time of settlement where no structured settlement is purchased
The price agreed upon between supplier and purchaser for a group of items without breakdown of individual item prices; a lot price In construction, "lump sum," means a fixed total price for the complete project, as specified
Payment of the entire proceeds of a life insurance policy at one time This is the method of settlement provided by most policies, unless an alternate settlement is elected by the policyowner before the insured's death or thereafter by the beneficiary before receiving the payment