Sometimes a beneficiary’s financial situation makes cashing out all of the money in one lump sum stand out from the alternatives. - Transfer the funds to your existing account (spouses only).
- Transfer the funds to an Inherited IRA.
- Take a lump sum of the funds now.
- Choose not to take the funds.
Some clients choose to take a lump sum payment to help pay for a college education, a down payment on a home or other large purchases. By taking the entire lump sum value, you can have access to all the cash right away and avoid the potential 10% early withdrawal penalty. However, be aware that you most likely will have to pay income taxes on it. And, depending on the size of the account, there’s a risk that it may bump you into a higher tax bracket for that particular year.
I’d be happy to discuss the details of this option with you to make sure it fits your financial needs and that you’re aware of the potential tax implications. | 
