Rollover cash balance plan to IRA?

I have a defined benefit pension in the form of a cash balance plan. At termination, a lump sum is available to me that I can take as an annuity, or roll it over into a tax-deferred account. (I can take it as a lump sum and not roll it over if I wanted to take a bath on taxes.)

I prefer not to count the balance in my current employer account because I don't control the investment and it's very different from the asset allocation in my 403b/401a accounts. If possible, how do I account for rolling the lump sum into my employer accounts at retirement, without it affecting taxes?

Comments

Idea: add an employer contribution equal to the lump sum in my terminal year? Does ESP apply any statutory maximums on contributions? It would exceed the current annual combined limits, which I believe are around $50K.

dan royer's picture

I don't believe there's any limit to what you could indicate as a lump contribution to the employer column in a tax-deferred plan in "contributions" area.

We use cookies to deliver the best user experience and improve our site.