The lump sum can be transferred to an IRA tax-free. Once in the IRA ... pays the balance of the account to the beneficiary. The chart below is a real-life example. This client has a pension ...

Lump Sum vs. Monthly Payments A pension beneficiary who is offered $250,000 in a single payment in lieu of $2,750 monthly payments for life can start by calculating the potential cumulative value ...

While any lump sum would likely be taxable, you could roll it directly into an IRA, withdraw funds, and pay income tax as you usually would with an IRA. Separately, pension monthly payments ...