Ted Young Posted March 15, 2022 Report Share Posted March 15, 2022 (edited) 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 Edited March 15, 2022 by jklcpa Moved to its own topic Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 15, 2022 Report Share Posted March 15, 2022 "putting it aside for her" for 3 years? She needed to do the indirect rollover within 60 days. Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted March 15, 2022 Report Share Posted March 15, 2022 Was this truly a pension and not a 401K? I'm thinking if you want to convert a pension to an IRA you need to convert the entire amount rather than a partial. Quote Link to comment Share on other sites More sharing options...
Philip1117 Posted March 15, 2022 Report Share Posted March 15, 2022 Sounds like a distribution not an indirect rollover. She got 3 years at once if pension money. Pension money not available for rollover it’s income. Quote Link to comment Share on other sites More sharing options...
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