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ldb10
New Member

the question im not sure about on turbo tax is"what did i do with the money from my retirement

the question on turbo tax that asks what did you do with the money from my pension the choices given  are   moved moneyto another account or returned it to the same account      rolled over to a ira      converted to a roth ira    or did a combo convert rollover or cash out . I just get a monthly pension. what do I choose?

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3 Replies

the question im not sure about on turbo tax is"what did i do with the money from my retirement

Choose you did something else with it.

the question im not sure about on turbo tax is"what did i do with the money from my retirement

Me too.  What happens if I did put some of it in a Roth?

HopeS
Expert Alumni

the question im not sure about on turbo tax is"what did i do with the money from my retirement

Assuming you are receiving distributions (Form 1099R,)  you can rollover a portion of your pension distribution into a ROTH.

 

Pension and annuity distributions are usually made to retired employees, disabled employees, and in some cases to the beneficiary of a deceased employee.

  • If no after-tax contributions were made to the pension plan before distribution, the entire amount is generally included in taxable income.
  • However, in cases where after-tax contributions were made to an annuity or pension, only a portion of the distribution will usually be taxed.

Therefore if you set up a ROTH IRA, you will pay taxes when the pension is rolled over. However, you won't pay taxes on the withdrawals since the contributions were made with after-tax funds.


If this response does not answer your question, please clarify.

 

@robjohn2011 

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