defined benefit life term pension

[Guest jadaigle]

Can a defined benefit life term pension be rolled over to a 401k when the a person is 55 years old?

[david rigby]

Not sure if I am certain of your terminology.

If you are asking if a regular retirment benefit, probably received monthly or quarterly, can be rolled over to an IRA, the answer is no, because a rollover cannot be "one of a series of periodic payments." (That quote is from memory; not sure if my quote is exact.)

Alternatively, if you are asking if the entire value of the lifetime benefit can be rolled over to an IRA, and then paid monthly from there, the answer if probably no. That would be governed by the terms of the plan document. If the plan had permitted it, that would be described as a "lump sum option." Most plans do not permit any change in the form of distribution once payments have commenced.

Second alternative: if you are referring to a benefit under plan X that is not yet in pay status, the answer is probably no. It is likely that the plan does not make any distribution until the participant has some severance of employment (retirement, death, disability, quit, etc.) If there has been a severance, but the participant is not yet old enough to commence receipt (for example, age 55), the terms of the plan will govern whether a lump sum option is available at that time.