State Pension to IRA Penalty

margie179 — Mon, 09 Mar 2026 08:09:39 GMT

I didn't stay with my last job long enough to be fully vested in the state pension plan (SC PEBA). As a result, I had one year to pull the money out or I would lose everything.

I rolled the money over into my IRA - which I was told would prevent any fees or penalties.

I've entered it all into Turbo Tax, but now it's telling me that I will have ongoing penalties until I repay what I took out. Did I enter it incorrectly? how do I fix this?

Re: State Pension to IRA Penalty

LudwigVan_fan — Mon, 14 Mar 2022 20:55:05 GMT

First, if you rolled the money directly from the pension fund to the IRA, there should be no penalties.

I'm not totally familiar with how TT asks the questions, but, for each 1099-R, there is a series of questions. One of which should be asking what you did with the money.

Box 7 of the 1099R should have an entry. If this was a direct rollover, Box 7 should have G selected, direct rollover. That should come up when you enter the information from the 1099R into TT.

That should eliminate TT asking about or inferring ongoing penalties until you repay it.

Hopefully that solves your problem.

topic State Pension to IRA Penalty in State tax filing

State Pension to IRA Penalty

Re: State Pension to IRA Penalty