This depends on the terms of the retirement plan. Many retirement plans require retirees to receive their benefits on a monthly basis, rather than in a lump sum. If the plan document does not provide for lump sum payments, there is no right to receive a lump sum payment.

Some employers have been known to make special limited time offers to allow persons retiring within a certain time window to take out all their money in a lump sum, and build in certain inducements – such as an attractive interest rate factor -- to encourage retirements. If you receive such an offer, it makes a great deal of sense to review the offer with a lawyer or financial planner to determine whether it is in your interest to accept or reject the offer.

(Reviewed 9-08)