NOT FOR REPRINT
Should Your Client Take a Lump-Sum Pension Buyout?
By
Rob Burgess
October 02, 2026 at 01:23 PM
Share & Print
What You Need To Know
- For those workers who still have pensions, companies will frequently offer a buyout to get the liability off their books.
- While most clients are better off sticking with annuity payments, a lump sum can make sense in situations like shortened life expectancy.
- For those who take the one-time payment, a direct rollover can help prevent tax consequences.
NOT FOR REPRINT
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Immediate Answers to Critical Tax Questions At Your Fingertips
Keep up with the latest tax rules and regulations with weekly, exclusive updates by our Tax Facts experts.
Get More InformationRecently Added Q&As
Recently Updated Q&As
What is the temporary "senior deduction" deduction for taxpayers age 65 and over?
Get Answer
Recently Updated Q&As
What is the temporary deduction for auto loan interest?
Get Answer
Recently Updated Q&As
What is the temporary deduction for overtime income?
Get Answer
Recently Updated Q&As
What is the temporary deduction for tip income?
Get Answer
Recently Updated Q&As
What is a high deductible health plan for purposes of an HSA?
Get Answer
Recently Updated Q&As
Are remote workers eligible for leave under the Family and Medical Leave Act (FMLA)?
Get Answer
Recently Updated Q&As
What is the CARES Act employee retention tax credit that was available during 2020 and 2021?
Get Answer
Recently Updated Q&As
Who must file a return?
Get Answer