Company Pension Plan
What would be the best way on a company pension, to take it as monthly annuity form or roll lump sum to an IRA and then get an IRA annuity?
Thank you for your answer. Since I have an annuity already, having the company pension directly roll it over to an IRA would be best. What PBGC coverage mean?
PBGC stands for “Pension Benefit Guarantee Corporation”. This is a govt agency that insures the pensions of most private pension plans up to a specified limit.
Permalink Submitted by Alan - IRA critic on Wed, 2019-08-07 23:27
If you are going to annuitize the pension anyway, you will get a better deal with the monthly pension, and in most cases will have PBGC coverage of this pension as well. The larger choice is whether to annuitize the pension or to do a direct rollover to an IRA and purchase a diversified portfolio that does not lock you an annuitized product. Note that SS benefits should be treated as an annuitized income when determining how much of your retirement income comes from annuities and how much remains in investments that you can cash in anytime and in any amount should you need additional income.
Permalink Submitted by Irma speranza on Thu, 2019-08-08 20:08
Thank you for your answer. Since I have an annuity already, having the company pension directly roll it over to an IRA would be best. What PBGC coverage mean?