Once you retire, your payout options will depend in large part upon the investments you have chosen. For example, your 403(b) plan could provide a lump-sum payment. With an annuity, you could receive regular payments for a specified period or for the rest of your life.

Whatever you choose, remember that you will pay ordinary income tax on your withdrawals; so, taking a lump sum may not be the best way to go in many cases.