The lump-sum distribution includes employer securities and the payer reported an amount in box 7.
A lump-sum distribution is when all of a plan participant's remaining balance from all of the employer's eligible plans of one kind are distributed or paid to them in one tax year (for example, pension, profit-sharing, or stock bonus plans).
The net unrealized appreciation (NUA) in employer securities is typically not subject to tax until you sell the securities, even if the lump-sum distribution includes employer securities and the payer reported a sum in box 7 of your Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. for NUA in employer securities. You may, however, decide to include the NUA in your income in the year that you receive the securities.
To know more about lump-sum payments here
https://brainly.com/question/23220127
#SPJ4
