ten-year tax option

ten-year tax option definition - business

ten-year tax option

A formula used to calculate a tax on the ordinary income portion of a lump-sum distribution of a qualified retirement plan. The tax is paid in one sum for the year the distribution is received. Taxpayers are permitted to select this option one time.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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