Can I Roll My Pension into an IRA?

Shawn Plummer

CEO, The Annuity Expert

Rolling Pension into an IRA

Yes, you can roll your pension into an IRA. This is typically done after you leave your employer or retire. To do this, choose the lump sum option from your pension plan and transfer it into an Individual Retirement Account (IRA).

Recommended Approach

Opt for an IRA Annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB):

  • Combines IRA and Pension Benefits: Rolling your pension into an IRA annuity with a GLWB allows you to enjoy the advantages of both an IRA and a pension.
  • Stable Income: The GLWB feature offers a steady income stream for life, similar to a pension.
  • Investment Growth Potential: An IRA provides potential for investment growth, depending on the market and the types of investments you choose.

Helpful Tool: Calculate how much retirement income an IRA can provide

Advantages of Rolling Pension into an IRA

  1. Control Over Investments: IRAs often offer more investment options compared to traditional pensions.
  2. Flexibility in Withdrawals: You have more flexibility in terms of withdrawal amounts and timing.
  3. Potential Tax Benefits: Rolling over to an IRA can offer tax-deferred growth potential.

Considerations

  • Consult a financial advisor: Before making a decision, it’s advisable to consult with a financial advisor to understand the implications, especially regarding taxes and investment options.
  • Understand Fees and Charges: Be aware of any fees or charges associated with the IRA annuity and GLWB.

Conclusion

Rolling your pension into an IRA, especially into an IRA annuity with a GLWB, can be a strategic move to secure a stable income in retirement while enjoying the flexibility and growth potential of an IRA. This approach combines the benefits of both a pension and an IRA, offering a comprehensive retirement income solution. For personalized advice and to explore the best options for your situation, consulting a financial expert is recommended.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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