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Updated over 6 years ago on . Most recent reply
Using my pension as an investment in real estate
I have a pension worth 60,000 and would like to cash out. Does anyone know what and if I have to pay taxes on the money if I use it to invest in real estate? I'm 62 and I was able to cash out at 55 without penalty. Thank you in advance!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
No, you do not cash out and then put money into an IRA. You transfer the money directly from the pension to the IRA - assuming your pension allows this option.
But before doing anything, I highly recommend letting a CPA or a financial advisor review your pension's terms. It's quite possible that cashing out on your pension is a bad idea long-term. Kinda like making a chicken soup out of the chicken that could provide you eggs for many years.