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