Should You Rollover a Pension to an IRA?


Quick Answer

Individuals who leave their employment or try to consolidate their retirement assets should consider rolling their pensions into an IRA, recommends U.S. News and World Report. This allows them to have greater control over the investment of their retirement funds.

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Full Answer

Two ways to roll a pension into an IRA are trustee-to-trustee transfers and manual transfers, according to Zacks Investment Research. For a trustee-to-trustee transfer, the manager of a pension plan transfers a lump-sum payment directly to the pensioner's brokerage. For a manual transfer, a pensioner needs to move his pension payment to an IRA within 60 days of withdrawal. If the pensioner fails to complete the rollover within 60 days, the IRS treats the pension payment as regular income.

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