Financial Glossary

Here you’ll find clear and concise explanations of key financial terms and concepts. Our goal is to help you better understand essential topics across the financial world.

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August Jepsen August Jepsen

Lump-Sum Distribution

A lump sum distribution is a one-time payment of the entire balance from a qualified retirement plan—such as a pension, profit-sharing, or stock bonus plan—made to a participant or beneficiary within a single tax year, instead of receiving funds as periodic installments; this option may trigger immediate tax consequences and is commonly chosen at retirement, separation from service, disability, or inheritance.

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