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Accounting, Payroll & Pension Issues/Company Closing
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Question
My company is closing.. I have a pension that I am fully vested in.. Can I take this pension and put into IRA. does the company have the right to hold pension until I am of retirement age ??
The answer depends on the type of pension and the provisions of the plan.
If you are participating in a defined benefit pension plan and the plan allows for lump sum payments, then you will be able to take a lump sum and transfer to an IRA. However, if the plan only has annuity options, then you will have to elect a pension from the choices given you.
If you are participating in what is known as a defined contribution plan whereby you have an account in the plan, then you should be able to elect a lump sum with rollover to an IRA.
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Accounting, Payroll & Pension Issues
Answers by Expert:
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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