No you can't do that. Your pension will be taxable. But you can do anything you want with the payments except you can't "roll it over" to a IRA like within the 60 days. That is only for 401K or IRA plans. You have to take the pension and pay tax on it. You can use the the money to make a NEW IRA contribution providing you are eligible to make a contribution. You need W2 wages or a net profit from self employment income to make a IRA contribution.
