IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Lump Sum Distributions from Pension Plans: Recent Evidence and Issues for Policy and Research

  • Burman, Leonard E.
  • Coe, Norma B.
  • Gale, William G.

We examine preretirement lump sum distributions (LSDs) from pension plans, which have grown significantly in recent years. Most LSD recipients do not roll over the funds into qualified accounts, but the likelihood of rollover rises for larger distributions. We find evidence suggesting that tax penalties imposed in 1986 on nonrollovers by people younger than 55 raised the likelihood of rollovers among this group, but had much less effect on the likelihood that such households saved the funds, where saving includes investing in taxable assets and paying off debt. We estimate that cashouts reduce annual retirement income by up to $1,000-3,000.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ntanet.org/NTJ/52/3/ntj-v52n03p553-62-lump-sum-distributions-pension.pdf
Download Restriction: no

File URL: http://www.ntanet.org/NTJ/52/3/ntj-v52n03p553-62-lump-sum-distributions-pension.html
Download Restriction: no

Article provided by National Tax Association in its journal National Tax Journal.

Volume (Year): 52 (1999)
Issue (Month): n. 3 (September)
Pages: 553-62

as
in new window

Handle: RePEc:ntj:journl:v:52:y:1999:i:n._3:p:553-62
Contact details of provider: Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109
Phone: (202)737-3325
Fax: (202) 737-7308
Web page: http://www.ntanet.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Olivia S. Mitchell & James M. Poterba & Mark J. Warshawsky, . "New Evidence on the Money's Worth of Individual Annuities," Pension Research Council Working Papers 97-9, Wharton School Pension Research Council, University of Pennsylvania.
  2. Christopher D. Carroll & Wendy E. Dunn, 1997. "Unemployment Expectations, Jumping (S,s) Triggers, and Household Balance Sheets," NBER Working Papers 6081, National Bureau of Economic Research, Inc.
  3. James M. Poterba & Steven F. Venti, 2001. "Preretirement Cashouts and Foregone Retirement Saving: Implications for 401(k) Asset Accumulation," NBER Chapters, in: Themes in the Economics of Aging, pages 23-58 National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:52:y:1999:i:n._3:p:553-62. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.