| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
forward averaging
Definition 1.
A method of calculating taxes on a lump-sum distribution from a qualified retirement plan, enabling one to pay less than one's current tax bracket.
|
Definition 2.
A method of treating lump-sum distributions as if they occurred over a five- or ten-year period. Forward averaging is only available to qualified plan participants who were born before 1936, and meet certain requirements.
|
|
|