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Pension & 401K

I'll be turning 65 next March and I'm thinking about retiring.  I've got two pensions.  One is a traditional pension which would be a monthly payment.  The other pension is called a portable pension with a lump sum in it.  My question is, if I only take the lump sum in the portable pension, would I be taxed 20%?   What about the traditional monthly pension?   I'm also thinking about rolling my 401K into an annuity.   What are the tax implications for doing this?

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Employee Tax & Finance Expert

Pension & 401K

Hello Vegas2022, 

Thanks for participating in Ask the Experts Event!

You will be taxed on the distribution you take out in a particular year.  If you are rolling over the 401K into an annuity, you will not be taxed on that until you take it out.  How much you will be taxed on the withdrawal depends on your tax bracket.  You may be able to estimate with the TaxCaster Tax Refund Calculator

Hope it helps!



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