Expert: Allen - 7/29/2006

Question
Hello... I have sent a previous email about this subject, but the Internet was cut just as I was trying to send it to you.  I do not know if it was actually sent, so I will re-type it.
 I can receive my pension in the near future.  I do not need the money at this time.  May I and is there any advantage to having the pension money directly deposited in my IRA account? Would this delay the taxation of the pension money?
 thank you, sue  

Answer
As you can see by my other e-mail, your first message would come through. I would add two thoughts to my earlier message.

1. When you reach age 70 and 6 months, you will have to start receiving small distributions from the plan or the IRA. These start out low - around 4% of the principle - and rise gradually as you get older. You can always take out more than the minimum.

2. You are in a good position not needing the money for living expenses. But it is important to invest it wisely.