Author Topic: What to do with pension refund from old job?  (Read 483 times)

the_fella

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What to do with pension refund from old job?
« on: October 18, 2023, 03:54:10 PM »
I used to be a public employee. We paid into a state pension instead of social security. You need 10 years to vest. I only have 6.5. I'm entitled to a refund of my contributions only, and nothing else. It's about $12k. What should I do with this?

Hypersion

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Re: What to do with pension refund from old job?
« Reply #1 on: October 18, 2023, 05:33:08 PM »
Can you deposit it into a IRA?

the_fella

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Re: What to do with pension refund from old job?
« Reply #2 on: October 23, 2023, 09:46:36 AM »
Probably. I'd have to open a traditional IRA.

reeshau

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Re: What to do with pension refund from old job?
« Reply #3 on: October 23, 2023, 09:50:31 AM »
Yeah, roll it over, or you will have to pay taxes on it.  If you don't already have an IRA, then it's a great reason to start one.

If the taxes don't scare you, then consider rolling it over to a Roth IRA.

the_fella

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Re: What to do with pension refund from old job?
« Reply #4 on: October 24, 2023, 11:11:56 AM »
I already have a Roth IRA. I'd need to open a traditional.

 

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