Hi there,
Yes - a pension lump sum rolled over to a Roth IRA is a taxable event. The funds you withdraw from your pension are considered taxable income in the year of the rollover, but future income and gains in the Roth IRA get the tax-free treatment .
A rollover to a Roth usually refers to when you move funds from a qualified retirement plan such as a pension fund, 401k, 403b to a Roth IRA or a designated Roth Account.
A Roth conversion usually refers to when you move funds from a traditional IRA to a Roth IRA.
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