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i recently retired from one job and took a higher paying one i get a pension every month which i don't need is there any way i can invest this money and avoid paying tax on it now? i'm over 60
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i recently retired from one job and took a higher paying one i get a pension every month which i don't need is there any
way i can invest this money and avoid paying tax on it now? i'm over 60


Not paying tax on the pension? You will have to pay tax on the pension.
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Greetings, Grindel, and welcome. You asked:

<<i recently retired from one job and took a higher paying one i get a pension every month which i don't need is there any way i can invest this money and avoid paying tax on it now? i'm over 60 >>

Pension payments cannot be transferred to an IRA and are considered income in the year received. Therefore, you must pay income tax on that income. If you meet the requirements for a fully deductible traditional IRA, then the best you can do is make a $2K per year contribution to one based on the earned income you have from your new job. For details on IRAs, see our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm.

Regards..Pixy
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There may be one concession in your tax liability. In Michigan (where I live), and I suspect other states as well, you owe no state tax on your pension. Yes there are some exceptions, but most of us are tax-free.

Nauert
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