It's a choice if your employer allows it. You can take a lump sum distribution of a pension plan and roll it to an IRA that you manage yourself, or choose a lifetime annuity to be paid in equal monthly, quarterly or yearly payments based on a life expectancy table. That can exceed the value of the retirement plan if you live long enough. On the other hand, if you roll into a IRA you might be able to make investments to equal or exceed the pension plan value.
You can't have it both ways by getting pension payments and then investing that in an IRA.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
