My company just closed its Pension Plan (employer contributions, so pre-tax I think), and I'm leaning toward rolling it into a new Roth IRA this year. Here's my basic status:
- 32 Years old, 10 yrs into my career
- Married, file jointly, wife doesn't earn much/anything
- I make roughly 65K/yr
- homeowner (5,000 or so deducted for interest/yr I think)
- Balance of around 16,000 in the closed Pension Plan awaiting my decision
My question is, should I take the tax hit on next year's return and roll the pension balance into a newly opened Roth IRA? If so, how much of a tax increase are we talking about? I assume I have to claim the entire balance as additional income.
Any suggestions? Is a Roth IRA the wrong call?
Thanks!!
- 32 Years old, 10 yrs into my career
- Married, file jointly, wife doesn't earn much/anything
- I make roughly 65K/yr
- homeowner (5,000 or so deducted for interest/yr I think)
- Balance of around 16,000 in the closed Pension Plan awaiting my decision
My question is, should I take the tax hit on next year's return and roll the pension balance into a newly opened Roth IRA? If so, how much of a tax increase are we talking about? I assume I have to claim the entire balance as additional income.
Any suggestions? Is a Roth IRA the wrong call?
Thanks!!
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