My job was recently outsourced, and when I turned 55, I began collecting a pension from my former employer. Since I was able to collect 80% of the payment I would receive at 65, there was no sense in waiting. But the pension payments have pushed me into a higher tax bracket, so I am losing more to taxes than I had expected. The pension plan was fully funded by my former employer, so the payments are 100% taxable. Since I don't need this money to live on while I am working full time, and I really want to use it for a real retirement in a few years, is it possible to roll these payments into an IRA or other tax deferred retirement account? I expect my future marginal tax rate to be lower than it is now with this bubble caused by the early pension payments, and I would like to delay paying the taxes to that time.
Unfortunately no, payments made over your lifetime (i.e., annuitized payments) are not eligible for rollover to an IRA. However, are you working at present? Possibly you could more into a 401(k) plan or a deductible IRA than your otherwise would have, given the extra income from your pension. Note that this is dependent on your working in addition to the pension money.
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