How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I am eligible to start collecting my pension retirement but

Resolved Question:

I am eligible to start collecting my pension retirement but was told as I couldn't keep working at my present job and collect my retirement. Is that an IRS regulation?
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.
Hi and welcome to Just Answer!
The IRS allow to
If you reached the pension plan’s normal retirement age - you may receive your pension. You need verify with retirement plan documents or confirm with the retirement plan administrator what is the normal retirement age.
The termination of service prior to reaching normal retirement age must be considered a “bona fide separation” by the IRS. Under IRS rules, employers are prohibited from paying benefits to an employee who has not reached the plan’s normal retirement age unless the retiree has a bona fide separation in service.
The employment separation is considered bona fide if there has been a good faith and complete termination of the employment relationship. An employee is not considered to have a valid severance of the employment relationship if, before the effective date of the termination, the employee has an agreement (verbal or written) to return to work with the same employer as either a retired employee or an independent contractor.
Let me know if you need any help.
Customer: replied 5 years ago.
Our pension plan states an employee is eligible to receive early retirment once they have turned 62 and have been with the agency for 25+ years. I have met both of those conditions. The pension plan adminstrator told me I can't put into the fund at the same time I'm receiving payments. I understand that. Then he said I couldn't be working at the agency while receiving payments even if I was no longer contributing to the pension fund. He said that was an IRS regulation. Is that true?
Expert:  Lev replied 5 years ago.
Based on your information 62 is the early retirement age - you may receive your pension at early retirement age only if you separate from service.
You need to reach the normal retirement age - at that age you may receive pension and continue to work. You need to contact the pension plan administrator and verify what is the normal retirement age.
Customer: replied 5 years ago.
So this is an IRS regulation...right?
Expert:  Lev replied 5 years ago.
That is correct. Most retirement plans set the normal retirement age - at 65.
But you need to verify with retirement plan documents or confirm with the retirement plan administrator what is the normal retirement age for your retirement plan.
Lev and other Tax Specialists are ready to help you

Related Tax Questions