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Rolling Over Your Pension Into IRA
Lately, I’ve had several clients that had a very important decision to make. When you retire and you have a 401k, then the choice is usually pretty simple- roll the 401k over into an IRA. There are some exceptions to the rule -under age 59 1/2 and if they hold employer stock- but usually that’s the way to go. What happens if a pension is involved? Pensions will typically pay you an income for the rest of your life and then pay your spouse half of the amount for the rest of her life. If you don’t choose the annuity option, then the only other choice is to take the the lump sum option. The lump sum option will allow you to take a big chunk up front and then roll that over to an IRA. You then are in control of how much you take per month as your retirement income.
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