Can I have pension payments put directly into my IRA?

Answer by  patti (29325)

You can set the payments directly to your IRA. Check with the IRA manager about the process. You must abide the laws regarding IRA contributions, including the annual limits set by the IRS. Your IRA manager can explain how to set up the payments (after you retire) and coordinate the plan with your retirement account.

Answer by  rainbow (96)

That would depend on your pension plan. Most pension plans require the funds to stay in the plan until your employment is terminated. Once that happens, your plan will let you know what, if any, portion can be transferred to your IRA. If it's done as a "direct rollover", you can avoid the 20% withholding requirement.

Answer by  Liz59 (10966)

No, you can not directly opt for this. You have to have your pension payments deposited into your account and then you can transfer.

Answer by  Maddux (65)

Yes, you can easily take pension payments and roll them over into an IRA. You can receive the payout in a lump sum and transfer them into the IRA.

Answer by  Latin4 (11170)

Yes, you can do this. The lump sum or payments can go directly in the IRA. Remember that if you get your check sent to you and you put the money in the IRA, you will pay taxes on this. You want the check to go directly to the bank.

Answer by  tamarawilhite (17883)

This is generally difficult legally. However, you can set up a money market account with your IRA holding company. Then have an amount equal to your pension payment pulled from the money market account and put in your IRA account each month.

Answer by  dsmith42 (371)

No. Contributions to an IRA have to be from earned income. Stock dividends, interest, annuities, capital gains, and retirement income such as social security or pension payments do not count as earned income. Check with the IRS to be sure.

Answer by  LeheckaG (1826)

Yes, if your pension-plan is willing to do so; you can direct a portion of your periodic-pension-payments into your IRA, probably via direct-deposits. YOU NEED to make sure that you meet your various IRA requirements: age-limits, required-distributions, not exceeding your annual contribution limits, ...

Answer by  Turks (319)

Yes, you can roll over you pension payments to your IRA account. However it does have its advantages and disadvantages too. And the best part is it is tax free!