Expert: Allen - 4/13/2010

Question
My husband and I both have small pensions from a previous employer and are receiving early monthly payments. Due to circumstances at this time we would be much better off if we could get a lump sum pay out for both. As both plans are over 10000.00 we are told by the provider that federal law prohibits a lump pay out at this time. As the monthly total is under 400.00 no one seems to want to buy it out right now. Suggestions?? Solutions??? HELP!

Answer
I know nothing in the law that refers to the $10,000 amount. However, in most circumstances, once payments commence, the method of distribution can not be changed.

I suggest making a written request to the trustee or plan administrator and await their response. Once you get it, write again and I might be able to help.