Forward Averaging

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Dictionary Says

Definition of 'Forward Averaging'

Treating lump-sum retirement-plan distributions as if they occurred over a five- or ten-year period. Forward averaging is available only to qualified plan participants who were born before 1936 and meet certain requirements.
Investopedia Says

Investopedia explains 'Forward Averaging'

This treatment results in the distributions being taxed at a lower rate than the individual's ordinary tax rate.

To be eligible for the capital gains and forward averaging treatment, qualified plan distributions must be in the form of a lump-sum distribution.

Note: The five-year income averaging is repealed for taxable years beginning on or after January 1, 2000.
Search results for

'Forward Averaging'

  • Combining Your Plan Assets? Not So Fast!

    http://www.investopedia.com/articles/retirement/03/051403.asp
    ... year period. This is referred to as "10-year forward averaging," and results
    in the distribution being taxed at a lower rate. Lump ...

  • Asset Distributions A Key Consideration For Retirees

    http://www.investopedia.com/articles/retirement/08/qualified-plan-distributions.asp
    ... However, if the distribution qualifies as a lump sum, it may be eligible for
    10-year forward averaging, which will result in lower taxation over the 10 years ...

  • Wealth-Building IRA Rollovers

    http://www.investopedia.com/articles/retirement/09/ira-qualified-plan-rollover.asp
    ... For plan participants aged 72 or younger, the conduit IRA preserves your fund's
    eligibility for forward averaging and favorable capital gains treatment at a ...

  • Averaging Down Never Looked So Good

    http://stocks.investopedia.com/stock-analysis/2009/Averaging-Down-Never-Looked-So-Good-NOVA-DPZ-SNA-NOV1119.aspx
    ... monthly price, your return would be 26.9%, 630 basis points higher than simply
    dollar-cost averaging each month or ... Moving Forward This is where it gets tricky. ...

  • Mattel Feeling Youthful

    http://stocks.investopedia.com/stock-analysis/2011/Mattel-Feeling-Youthful-MAT-HAS-DIS-VIA-VIA.B0719.aspx
    ... growth has been anemic for Mattel over the past five years, averaging only about
    2.5 ... Mattel's forward P/E currently stands at 11.6 and is quite reasonable given ...

  • Should You Convert Your IRA?

    http://www.investopedia.com/articles/retirement/08/ira-conversion.asp
    ... His mutual funds had performed admirably, averaging about 12% growth per year over
    time. ... as the family with the business loss for their carry-forward deductions ...

  • CFA Level 1 Study Guide - Alternative Investments - Investment ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/investment-strategies.asp
    ... 5.11 Spot Market Calculations; 5.12 Forward Market Calculations; 5.13 Interest
    Applications; ... 15.20 Currency Forward Contracts; 15.21 Futures vs. ...

  • 5 Forex Day Trading Mistakes To Avoid

    http://www.investopedia.com/articles/forex/11/5-forex-day-trading-mistakes.asp
    ... (To learn more on averaging down, check ... Often there are additional statements, figures
    or forward looking indications provided by news announcements that can ...

  • Healthier Alternatives To The Pantry

    http://stocks.investopedia.com/stock-analysis/2011/Healthier-Alternatives-To-The-Pantry-PTRY-CASY-SVU-KR1215.aspx
    ... Sales growth has been robust over the past five years, averaging more than 10% annually,
    but profit growth ... The Pantry trades at a rock-bottom forward P/E of 7.1 ...

  • Oil Sands Earnings Analysis

    http://stocks.investopedia.com/stock-analysis/2010/Oil-Sands-Earnings-Analysis-SU-CNQ-ENB-HSE-CVE-COP1109.aspx
    ... Oil sands production in particular was impressive, with Suncor averaging 306,600
    b/d ... proven ability to hammer out production, I like this stock going forward. ...

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