How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12691
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I 't understand the Minimum Present Value Segment Rates. I

Customer Question

I don't understand the Minimum Present Value Segment Rates. I want to retire, but HR says, if this rate goes up got published 2015 rates, my lump sum amount will decrease. True? and why? Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Yes, this is true.
The reason this happens is that lump sum options from DB pension plans are required to use this rate to calculate the lump sum.
The logic is that when the rate goes higher, it takes less money in today's dollars to fund the monthly/yearly pension going forward.
This may be one reason that you don't take the lump sum ... Thereby putting that risk back onto the company
Please let me know if you have any questions at all
Expert:  Lane replied 2 years ago.
Hi, just checking back to see if you saw that answer.
Here's where you can find the rates:
Expert:  Lane replied 2 years ago.
I’m just checking back in to see how things are going.
Did my answer help?
Let me know if you need more here...