Pension Rollover

Forum|Forum|1 year ago
September 14, 2024
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I did a direct rollover of my old state pension to a traditional IRA. The pension had pre and post tax contributions. They said they could only issue one check but did give me the breakdown between the two amounts. Will I be able to reduce my taxable income by the $4,000 in post tax contributions because it was rolled over into a traditional IRA?

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Best answer by VolvoGirl

No it's not going to reduce your income for 2024. It is not a new contribution to the IRA. It will reduce your income when you take a distribution from the IRA. The distribution will be prorated between pre-tax and post tax amounts.

VolvoGirl

Employee

Well none of the rollover will be taxable. So that's good and not a problem. But the post tax amount needs to be kept separate. I'm not sure how that should work. I'll page @dmertz

Did they take any tax withholding out of it?

Myunk9Author

There were no withholdings. I figured it wouldn't be taxed as the whole amount went to a traditional rollover IRA. I'm just not sure what the effect is of the post tax amount going into a pre tax account. I was hoping it would reduce my taxable income when I file my 2024 taxes.