Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
What type of pension is this? Is it a defined contribution or a defined benefit
Unfortunately you cannot prorate the pension benefits for the years that they were for. You will pay tax on the benefit the year you actually receive the funds. So, this is unfortunate.
And whether or not you can roll over the amount will be stipulated in your plan document. Your plan administrator should be able to inform you if this is allowed or not.
Another thing to consider is the impact of receiving this on your social security benefits. Now that you have received these funds, 85% of your social security will also be taxable.
All things considered, what is my best option?
i.e., best option to minimize the tax burder for 2013?
also, before I get disconnected from you, how do I get back in contact with you?
Well, I hate to be the bearer of bad news, but there's not much you can do to minimize your tax burden
The plan is entitled 'Retirement Restoration Plan (formerly the Equalization Benefit Plan)).
If you don't have a business, and you're too old to contribute to retirement plans, and you don't have deductions to itemize such as home mortgage interest, medical expenses, and state taxes then there's little that can be done to mimimize the tax
I couldn't tell you if rollovers were allowed unless I read the plan documents
This seems unfair since my burden would, no doubt, been less if I had paid tax on a prorated portion in the years that they should have applied. Oh well, I can't recall anyone suggesting that the income tax rules were 100% fair. Thanks for you help.
I'm truly sorry
I wish there was better news to report
I know that this probably wasn't the news you had hoped to hear, however I would appreciate a positive rating on my response so that I can receive credit for assisting today