Pension buyout to IRA
I am 69 and have a traditional IRA. On 1 Nov. 2015, I will recieve a lump sum buyout of my previous employer pension. I intend to roll that to an IRA. Is there any reason or benfit to keeping this money in a separate IRA?
I am 69 and have a traditional IRA. On 1 Nov. 2015, I will recieve a lump sum buyout of my previous employer pension. I intend to roll that to an IRA. Is there any reason or benfit to keeping this money in a separate IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2015-07-21 19:56
There might be creditor protection benefits in using a separate rollover IRA if you live in a state that does not provide full creditor protection for IRAs, and your IRA accounts may exceed 1.2mm in value at some point. IRAs that your made regular contributions to are only protected up to that limit if you live in one of the states that uses the federal bankruptcy Act provisions. A separate rollover IRA is also beneficial in some cases if you ever want to roll this IRA balance back into a new employer’s plan. Please advise if this pension has previously been annuitized.