Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Pension Plan to Traditional or Roth IRA
Old 03-03-2015, 11:10 AM   #1
Dryer sheet aficionado
 
Join Date: May 2013
Posts: 37
Pension Plan to Traditional or Roth IRA

I've been retired for ~1 year and have been receiving monthly pension payments from a traditional Defined Benefit Plan.

I have no wages (earned income). Is it possible to rollover some of this qualified distribution from a retirement plan into a traditional or Roth IRA?
__________________

__________________
Dan32 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-03-2015, 02:13 PM   #2
Recycles dryer sheets
gromit's Avatar
 
Join Date: May 2010
Location: Atlanta
Posts: 154
Let someone else confirm this as a fact, but let me give you a tentative NO. My reason for thinking the answer is no is that I recall looking into the same question a while back. I don't remember where I determined that the answer is no, so I'll defer to others that post.
__________________

__________________
gromit is offline   Reply With Quote
Old 03-03-2015, 06:19 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,899
Do you have a working spouse? You need earned income to invest new money in an IRA.
__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Old 03-04-2015, 11:09 AM   #4
Dryer sheet aficionado
 
Join Date: May 2013
Posts: 37
I do have a working spouse who works only very part time. We have 80% of her salary going to to 401K (most of the rest goes to taxes, SS, etc). Since my pension check is from a qualified retirement plan, I was hoping to characterize this as a rollover and not a new contribution. Therefore earned income would not be required??
__________________
Dan32 is offline   Reply With Quote
Old 03-04-2015, 11:29 AM   #5
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
You need earned income to contribute to a ROTH or IRA and pension income isn't earned. Your pension check is income and taxable.....and you don't have anything like a DC account balance to rollover.....The only way I can see is if you are offered a buy out and then you would get today's lump sum value of your pension benefit and you would roll that over to an IRA.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 03-08-2015, 09:41 AM   #6
Recycles dryer sheets
Cat-tirement's Avatar
 
Join Date: Mar 2013
Posts: 188
Quote:
Originally Posted by Dan32 View Post
I do have a working spouse who works only very part time. We have 80% of her salary going to to 401K (most of the rest goes to taxes, SS, etc).
There is the "Kay Bailey Hutchison Spousal IRA" option if you file a joint return, though it may not help much if your spouse is not working much. From pub 590a:

For 2014, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts:
1. $5,500 ($6,500 if you are age 50 or older), or
2. The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts.
  • Your spouse's IRA contribution for the year to a traditional IRA.
  • Any contributions for the year to a Roth IRA on be- half of your spouse.
This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older).

I am planning on doing this for 2015 as I retired last fall and DW will be working for another year.
__________________

__________________
How can you tell when a cat is retired?
Cat-tirement is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Traditional after-tax IRA -> Roth IRA conversion easy? wanaberetiree FIRE and Money 3 09-16-2013 09:10 AM
Roth - Traditional - Roth Conversion??? CorporateSoldier FIRE and Money 4 03-10-2011 10:07 PM
Need advice: traditional 403(b) vs. Roth 403(b) vs. Roth IRA vs. taxable account Silhan FIRE and Money 12 06-07-2007 11:08 AM
Converting Traditional IRA to Roth IRA piranha Young Dreamers 4 04-14-2007 08:39 AM
Contributing to Roth IRA and Traditional IRA mrinvest Young Dreamers 18 11-22-2006 11:45 AM

 

 
All times are GMT -6. The time now is 04:58 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.