IRS Cracks Down on Accelerated Lump Sum Pension Buyout Offers
Jul 21, 2016
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By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
IRS Notice 2015-49 now prevents defined benefit plans from offering lump sum buyouts to employees who already get their pension. While this IRS decision protects retirees from questionable lump sum offers, it limits their flexibility and could expose them to pension defaults.