FORWARD AVERAGING - A method of calculating taxes on a lump sum distribution from a qualified retiremen...
FORWARD CASH EXPOSURE (FCE) - A term sometimes used to describe the quantity of a financial institution...
See: Forward contract
Forward averaging
A method of calculating taxes on a lump-sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate.
Forward contract ...
However, with a tax break called forward averaging, just one tax is paid. This tax is determined by calculating the total amount that would have been paid if the money had been collected in installments.
Everyone else is limited to 5-year forward averaging. For those still eligible, 10-year averaging provides the opportunity to pay tax on a lump sum distribution as if it were the only income received over a 10-year period.
 See also: Compensation, Saving, Expense, Franchise, Foreign corporation
  
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