Can I consolidate retirement funds from a former employer into a different account where I have investment control?

Question

I have a state retirement fund balance that I can receive in lump sum or annuity.  I am ten years out from retiring on a pension from my county retirement fund in a different state.  I would prefer getting the lump sum from my former plan and investing it into a Roth-type account, like my 427, minimizing tax consequences.  My 427 will only allow a maximum annual contribution of $18,000, but my old state lump sum is $57,000.

A Hunch · Accepted Answer

You mean a 457 plan, not a 427 plan.

If the money in the pension plan is currently available to you, you can do a pension to roth conversion.  Since roth is post-tax, you will pay the tax at the time of the conversion.
- you do not "take" the money, it is transferred from one account to another so there is no payout liability.

If you don't want to pay taxes at this time, you would do a pension to individual IRA.

D J · Answer

What you are interested in is a rollover Ira. I suggest you try Vanguard. When I left my last job I had them handle the rollover & it was real easy. With a targeted retirement account they have done quite will for me.

Can I consolidate retirement funds from a former employer into a different account where I have investment control?

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