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emc011075, Tax Adviser
Category: Social Security
Satisfied Customers: 3174
Experience:  Tax adviser IRS licensed Enrolled Agent and tax instructor
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If Iam being offered a lump sum payment on a pension

Customer Question

if Iam being offered a lump sum payment on a pension plan,how will this affect my disability payments if I roll over to an IRA?
Submitted: 1 year ago.
Category: Social Security
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Are you asking about social security disability?

Customer: replied 1 year ago.
Expert:  emc011075 replied 1 year ago.

Distribution or rollover from pension/401K will not affect your benefits. It is not earned income. Only earned income like self-employment or job can reduce or eliminate your benefits.

Customer: replied 1 year ago.
really ,so all I pay is the taxes?
Expert:  emc011075 replied 1 year ago.

If you do rollover, you will not pay any taxes. Just make sure you do direct rollover (trustee to trustee). Do not request a distribution and than deposit it into IRA yourself.

Expert:  emc011075 replied 1 year ago.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.