Accounting, Payroll & Pension Issues/lump sum to IRA

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Expert: - 2/3/2008


Question
Can I roll a lump sum pension (approx $150,000)at 62 years old into a Mutual Fund IRA like at Vanguard? If so, and the money is transferred direct, will I only pay tax when I withdraw money to live on from Vanguard(I don't contribute to pension it's completely company paid)?

Answer
The answer to your questions are yes and yes. This is definitely the way to go. Just make certain to tell the trustee of the plan to roll the money over to Vanguard rather than making the check out to you. If you contact Vanguard they will set up the account for you and tell you how to proceed.

Accounting, Payroll & Pension Issues

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Allen

Expertise

Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions

Experience

Over 35years experience in the pension field

Organizations
Various actuarial organizations

Education/Credentials
MBA and various professional certifications

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