Pensions

Would it be worth taking out my pension and putting it into a Roth IRA’s. Can you do that?



  • If your pension offers a lump sum distribution option, you can roll all or part of it to a Roth IRA, but this will all be taxable income, so you probably should not roll all to Roth. Whether a Roth is better than a rollover to a traditional IRA or not depends on what your tax rate will be this year compared to what you expect it to be in retirement.
  • If you pension is paid to you as a monthly annuity and there is no lump sum option, you cannot roll the monthly distributions over to a Roth IRA OR a traditional IRA.

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