For example, if a $100,000 lump-sum distribution is directly transferred to another tax-deferred account, no Federal tax is due at the time.

Also changed by the new law is the treatment of lump-sum distributions from a retirement plan, which previously enjoyed a number of tax breaks.

But you have only one chance, so if more than one lump-sum distribution is coming, you must decide which to give special treatment.

The maximum annual withdrawal, adjusted each year for inflation, is currently $155,000, or $775,000 in the case of a lump-sum distribution.

The pension beneficiaries were able to choose between a lump-sum distribution or an annuity provided by an insurance company.

Designated beneficiaries other than spouses can take a lump-sum distribution or annual withdrawals based on their life expectancies.

Which is the better strategy from a tax perspective, a lump-sum distribution or a rollover into an individual retirement account?

A If you decide to take a lump-sum distribution, you may be eligible for a special averaging-method tax rate.

"In such a case, a lump-sum distribution is advisable."

For lump-sum distributions, the exempt amounts are five times the annual limits.