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If I receive monthly payments on retirement plan can I roll any of that plan into a IRA account.

I have medical bills to pay due to cancer surgery.I receive social security disability but I need to payoff my medical to be able to rid myself of the grief Im having over these bills.

Dec 30, 2014 by Timothy from Caldwell, ID in  |  Flag
4 Answers  |  6 Followers
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2 votes

You must have EARNED INCOME (job, self employment, etc) to make an IRA contribution. So technically, the answer is no, you can't directly take a distribution from one retirement plan and then deposit it into another. .

Comment   |  Flag   |  Dec 30, 2014 from Bridgewater, NJ

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Tunc Tanin Level 10

Just like James mentioned you can not take a distribution and then deposit into another plan. However, you are allowed to do a partial conversion to a Roth IRA. You dont need to have earned income to complete a partial Roth Conversion. But the partial conversion comes after you take out your required distributions.

1 Comment   |  Flag   |  Dec 30, 2014 from Somerville, MA
James D. Kinney, CFP®

Right, good point. Although not sure that's what Timothy had in mind.

Flag |  Dec 30, 2014 near Bridgewater, NJ

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John Essigman Level 17

Hi Timothy,

Very sorry to learn about your health issues but good to hear that you survived cancer.

We really need more information… What type of retirement plan are you referring to? Many defined benefit retirement plans are similar to an annuity that has been annuitized. Once distributions begin the plan does not allow changes, rollovers, or lump-sum distributions.

Warmest regards

Comment   |  Flag   |  Dec 31, 2014 from Cleveland, GA

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Timothy,

To do a better job of providing you with useful information it would be very helpful to know more about the kind of retirement plan you have.

Comment   |  Flag   |  Dec 30, 2014 from Fort Washington, PA

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