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Old 08-14-2017, 03:06 AM
 
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Quote:
Originally Posted by Hannah5555 View Post
Not sure where you're getting your info but I can definitely take my private pension and put it into a Roth IRA and I will be taxed on the amounts I withdraw, whether it's $1K or $10K.
nope! it is you that better check your source of info . they are correct !


only earned income can go in to an ira ,whether roth or traditional. no pension money can be contributed . you must be working to contribute in which case even if you are getting a pension it is the earned income portion going in .

you can only convert money already in the ira as well .
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Old 08-14-2017, 03:09 AM
 
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Quote:
Originally Posted by Hannah5555 View Post
I was told I could convert my tiny pension into a Roth and as long as I only withdrew (relatively) small amounts at a time, that's what I would be taxed on.
you were given mis-information . i suggest you cut off as a source who ever gave you that wrong information , they are quite wrong about that .
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Old 08-14-2017, 03:45 AM
 
Location: Central Massachusetts
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Hannah5555 can do it but it will require a two step process. First the pension can be converted into an IRA. Once converted there a Roth conversion can take place. Everything depends on the pension and the rules governing. https://rodgers-associates.com/newsl...ension-to-ira/
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Old 08-14-2017, 03:48 AM
 
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doesn't that apply to pensions that are no longer going to be pensions or act as a pension for you ? that roll over is when pensions are closing down or lump sums being distributed ,yes?

that is quite different than taking the cash flow from a pension and contributing to an ira .

as far as i know if you are continuing with the cash flow from the pension and not taking a lump sum you can't contribute . the poster said nothing about taking the money instead of the pension .
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Old 08-14-2017, 04:00 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by mathjak107 View Post
doesn't that apply to pensions that are no longer going to be pensions or act as a pension for you ? that roll over is when pensions are closing down or lump sums being distributed ,yes?

that is quite different than taking the cash flow from a pension and contributing to an ira .

as far as i know if you are continuing with the cash flow from the pension and not taking a lump sum you can't contribute . the poster said nothing about taking the money instead of the pension .
correct. I believe that Hannah5555 is talking about taking the "tiny" pension to eventually convert to Roth. If the rules of the pension allow for a buy out, that money can be rolled into an IRA. Once in the IRA and the dust has settled. The t's are crossed and the i's are dotted. Then a Roth conversion can commence from the IRA. Everything hinges on the pension rules though.
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Old 08-14-2017, 04:01 AM
 
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well we have to see what he says ,so far he has given no indication this is a roll over which is totally different than just taking a tiny pension amount and contributing .

he has to reduce or end that pension and he has not said that is the case yet .
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Old 08-14-2017, 08:30 AM
 
Location: Straddling two worlds
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Quote:
Originally Posted by mathjak107 View Post
well we have to see what he says ,so far he has given no indication this is a roll over which is totally different than just taking a tiny pension amount and contributing .

he has to reduce or end that pension and he has not said that is the case yet .
Okay to sum up. This is a private pension I have not contributed a penny to and I will be taking a lump sum distribution. Pension will be approximately $60K depending on when my actual last day at work is.
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Old 08-14-2017, 08:32 AM
 
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okay , that is better. then it is going to be rollover which you can do , but like old soldier said ,you have to do it in 2 steps .

that is an important detail .
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Old 08-14-2017, 09:02 AM
 
Location: Straddling two worlds
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Thank you both for valuable advice! I will check it out.
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Old 08-14-2017, 09:53 AM
 
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Also note that any conversion to a Roth is taxed at the time of conversion. Future withdrawals are free of tax.
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