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Pension Conversion To Lump Sum

 

Motogopher
(@motogopher)
Active Member Customer
Joined: 11 months ago
Posts: 16
Topic starter  

Currently, I have two separate import files to model a pension vs. simply taking the lump sum. It works as I'm retiring in January but then I realized that the lump sum wouldn't hit my account until February. I originally thought just starting the new year with the lump sum added to my account balances would work, and it does, but I realized this is also giving me one month of inflated account values vs adding in February. This also requires my desktop and laptop to view at the same time and make comparisons which is not a problem either. So I thought I would put these into one file. I read the instructions on how to enter a lump sum pension payout but it just shows up as income and then total savings. My lump sum will actually go into my 401k as pre-tax and that's where it needs to be reflected. How can I get this amount into my "Your TD" account, preferably in February? Seems like there is a way but I don't want to create inaccurate math results from doing the wrong thing. Thanks.


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Motogopher
(@motogopher)
Active Member Customer
Joined: 11 months ago
Posts: 16
Topic starter  

I may have figured out one way to do this. In Employment Income Stream #2, enter 2/1/2022 for both Start and Stop. Enter the lump sum amount in both Annual Gross Income and Personal Contribution To Tax-Deferred Accounts (Pre-Tax). Tick the box for "Disable SS contributions?". That seems to put the money in the correct place. Thoughts?


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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 1 year ago
Posts: 263
 

I concur that doing it via EIS #2 is a good way to go, and it sounds like you did it correctly.

Stuart


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