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Thanks for all the responses.....
I think I have screwed up! I DID NOT take out a distribution from the pension plan. Instead, I received a check for the whole amount.... When I do put this total pension money into an IRA, will I still be able to take the 50K distribution to pay off my house without paying the 10% penalty? I guess I should have had the 50K withheld from my retirement plan to begin with. How stupid of me!!
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KsGolfer asks:

<<I think I have screwed up! I DID NOT take out a distribution from the pension plan. Instead, I received a check for the whole amount.... When I do put this total pension money into an IRA, will I still be able to take the 50K distribution to pay off my house without paying the 10% penalty? >>

No. When the money reaches the IRA, then it falls under IRA rules. You cannot touch it until age 59 1/2 without paying the 10% penalty unless you use SEPP withdrawals under Section 72t rules. Chances are SEPP will not give you the $50K you seek.

Keep the $50K out of the amount you roll to the IRA. That way it isn't part of the IRA and you will only pay income taxes and no penalty on that amount.

Regards..Pixy
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