Pension Plan Rollover to 401(k)

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 29, 2023

The ideal way to rollover a pension plan into a 401(k) is through a direct transfer.

By doing this, to avoid paying the withdrawal tax on your pension and can defer your taxable income.

You can also take the pension as a payout, but it will be taxed.

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Can I Rollover a 401(k) into a 529 Plan?

You cannot rollover a 401(k) into a 529 plan.

Any withdrawals you make from your 401(k) will be taxed, and be subject to an early withdrawal fee if applicable.

This is also the case for individual retirement accounts.

Pension Plan Rollover to 401(k) FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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