Please excuse a silly question from a new fool!My mother needs to buy back several years in a stateemployees pension plan but is having trouble raisingthe necessary capital. She has enough in an IRA to cover the bill but the plan admin has informed her thatthey won't accept a rollover check (that the IRSforbids this type of transfer). I'm not sure Iunderstand this... Can she take the distribution - 20% withholding, pay off the pension buy back, anddeduct it?The extra $ she earns in retirement form the comes outto $315/mo if she buys back the years so I'm thinkingthat the $6000 she needs to spend to buy back the years is worth it (19 month recoup not including IRA growth).It would be worth it to pay the penalty and taxes onthe early IRA distribution (she's 54) to go into the pension, but we're looking for the least expensivemethod. Refinancing her house is an option, but thenit's a comparison between tax/penalty vs. closing costs.Any help would be greatly appreciated!-Don Robin
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