Quote:
Originally Posted by Buehler445
Can you roll the pension into a 401 or IRA? Typically rolls are not taxable unless you're rolling from traditional IRA to Roth. Then you have to pay tax on the amount to make it after tax contributions.
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If it's a pension payout, you can definitely roll it over into an IRA without any taxes or penalties. You have to do within a certain amount of time after receiving the payment, though.
I would definitely go that route. If you use it to buy rental property, it's the equivalent of paying 45 percent above the asking price since you're going to get taxes and penalties.
It is possible to buy a rental from within your IRA, but it's really hard to do. I looked into it once.