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 Is that money being withdrawn classified as a pension and treated that way with calculating income on state and federal tax returns?
You'll need to sign in or create an account to connect with an expert.
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.
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
knownoise
Returning Member
TomG6
New Member
chinths
New Member
jlf_spain
Returning Member
Eddie 3
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.