ST Alpha - "You normally can't rollover a Pension. It's not real money until you begin to take payments from it. It's only an accrued benefit " (Reading a Post)

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In response to "Can I ask a stupid pension question because I've been curious: say you leave a company. Take pension and roll to IRA or 401(k)? Or leave it as is?" by TFox

You normally can't rollover a Pension. It's not real money until you begin to take payments from it. It's only an accrued benefit

Posted by decline (aka Decline) Feb 22 '12, 07:31

As for a 401(k) plan, if you have a balance of over 5,000 (1,000 for some plans), you can leave the money in there until your retire - or reach the age of 70 1/2 at which point you have to start taking minimum required distributions

Responses:

From our pension plan's description: - TFox Feb 22, 07:37 3
- it is my understanding you will not take the 10% hit becasue the rollover is not seen as an early withdrawal. -- nm - Diva Feb 22, 07:39 2
  - This is correct if you roll it over to an IRA. The 10% penalty only applies when you take it as cash -- nm - decline Feb 22, 07:50
  - I'm not planning on leaving, but I'm torn because... - TFox Feb 22, 07:42

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You normally can't rollover a Pension. It's not real money until you begin to take payments from it. It's only an accrued benefit

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