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kevincourtne7y
New Member

Can i rollover my monthly pesion distribution to a trdational ira to shelter taxable status

I want to defer My 2017 Pension distribution is it OK to roll entire 50k into a traditional IRA to get non-tax status. Intuit implies I can.

 

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macuser_22
Level 15

Can i rollover my monthly pesion distribution to a trdational ira to shelter taxable status

A periodic pension distribution is not eligible for rollovers.

**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.**

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3 Replies
macuser_22
Level 15

Can i rollover my monthly pesion distribution to a trdational ira to shelter taxable status

A periodic pension distribution is not eligible for rollovers.

**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.**
kevincourtne7y
New Member

Can i rollover my monthly pesion distribution to a trdational ira to shelter taxable status

Disappointing but OK, It's just double hit don't mind paying the tax but using pension to pay college tuition and the added income makes us not eligible for tax credit. seems wrong but oh well (solutions/suggestions welcome) Thanks All.
macuser_22
Level 15

Can i rollover my monthly pesion distribution to a trdational ira to shelter taxable status

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.**
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