Pension Plan Distribution

[mylife]

Hello,

Checking in for some advice. My last employer closed their pension plan and sent me a check. May I keep it if I don't roll it over? My attorney said he believes it's exemot as it came from an exemot account but he's not certain. Any advice is appreciated!


Thank you!!

[magic13]

I believe once the pension is paid out it is considered income. There are many people who are in Chapter 13 whose only monthly income is a pension check.While it is exempt to creditors outside bankruptcy court, is not exempt to the Trustee in court if distributed. If I was you I would roll it over into a exempt retirement account until discharged.

[LadyInTheRed]

I agree with magic13. Roll it over into an IRA. Not only to protect it from the trustee, but also to avoid paying income taxes on the amount you received and because it is the smart thing to do for your future.

[mylife]

Many thanks to magic13 and LadyInTheRed for the information!