My client turned 65 this tax year. Upon turning 65, she went into HR and inquired about starting to receive her pension. They told the that she was eligible for it at age 62, and that they had been "putting it aside for her" for 3 years.
The gave her a check for about 35k which she, within the week, deposited in her personal IRA.
To me, this is a rollover; unless the IRS rules it to be deferred compensation.
To my immediate supervisor, who is also my company's President, this is a fully taxable distribution.
I'm not convinced.
I need some high-powered ammunition, folks. Unless you convince me that I am wrong...
Ted
