Can I deduct a pension plan from my old company that I recently transferred to an IRA?

by Tami Noll Russo, CPA | Feb 07, 2018
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I had a pension plan with my old company, and I recently transferred that amount to a traditional IRA. Is this tax deductible? If yes, I do see Form 5498 online from my investment account. Do I need a form 1099R from them when I do my tax return this year?

Direct rollovers from a pension to an IRA are not taxable. Your pension plan should issue a 1099R. Box 7 of the 1099 should include code G (direct rollover). There should be nothing in box 2a for taxable amount.

You will only get a 1099R from your investment account if/when you take a distribution or withdraw from the IRA.

Please don't forget to double check your 1099s and other tax forms for accuracy.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Tami Noll Russo, CPA, is a certified financial planner with Noll Financial Services in Middletown, Pa.

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The responses are based on the limited information provided by the questioner and are intended to provide general information, not specific accounting or tax advice. The ideas are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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