Assuming you are receiving distributions (Form 1099R,) you can rollover a portion of your pension distribution into a ROTH.
Pension and annuity distributions are usually made to retired employees, disabled employees, and in some cases to the beneficiary of a deceased employee.
- If no after-tax contributions were made to the pension plan before distribution, the entire amount is generally included in taxable income.
- However, in cases where after-tax contributions were made to an annuity or pension, only a portion of the distribution will usually be taxed.
Therefore if you set up a ROTH IRA, you will pay taxes when the pension is rolled over. However, you won't pay taxes on the withdrawals since the contributions were made with after-tax funds.
If this response does not answer your question, please clarify.
@robjohn2011
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
