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Subject:  Re: Rollover OUT of Roth, INTO State Pension Pla Date:  9/20/2012  11:30 AM
Author:  BruceCM Number:  70932 of 88541

I've known of pensions allowing covered employees to purchase additional credits for years of employment prior to the implementation of the plan. But there is usually no free lunch here....what you are buying is the actuarial equivalent of investing the same dollars and averaging an annual return equal to the discount rate of the calculation. Anything is possible, particularly with non-ERISA state pensions....but unless you can find where the state is providing you some kind of guaranteed bonus through the credits that you can show through time value of money calcs to be a true added-benefit, I would be skeptical.

The IRS currently prohibits transfer of after-tax basis from a TIRA to a qualified retirement plan....only the pretax (deductible contributions + rollovers + all earnings) portion of the TIRA may be rolled over. But state pension plans are not ERISA plans, so somehow this restriction may have been worked around so that Roth IRA balances can be rolled into the pension.....but then, how would future annuity payments to the retiree account for the basis? These are the kinds of questions I think I'd be asking the pension plan administrator.

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