Company gave me option to take monthly pension vs a lump sum. I elected a lump sum and rolled it into an IRA. I am not taking withdrawals from the IRA on a regular basis. Is that money being withdrawn classified as a pension and treated that way with calculating income on state and federal tax returns?
The tax treatment of pensions and IRA is the same for federal tax purposes. For state taxes, it depends on the state. There are states that do not tax pension income, but do tax IRS withdrawal. If you rolled over a lump sum payment from a pension to an IRA, it is no longer a qualified retirement plan, it is an IRA and will be taxed accordingly.
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