Forward averaging

A method of calculating taxes on a lump sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate.

Forward Averaging

A former practice allowing certain pensioners in the United States to treat lump sum retirement plan withdrawals as if they occurred over a period of five or 10 years. This allowed qualifying retirees to pay only one-fifth or one-tenth of the taxes that they would otherwise have had to pay in a given year. Forward averaging was discontinued in 2000.

单词	forward averaging
释义	Forward averaging Forward averaging A method of calculating taxes on a lump sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate. Forward Averaging A former practice allowing certain pensioners in the United States to treat lump sum retirement plan withdrawals as if they occurred over a period of five or 10 years. This allowed qualifying retirees to pay only one-fifth or one-tenth of the taxes that they would otherwise have had to pay in a given year. Forward averaging was discontinued in 2000.
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