Leaving a job with a pension early

Leaving a job with a pension early
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#1

I’m considering leaving a job with a pension, and they’d be repaying me about $28,000. Is there a method of rolling that amount into a mortgage down payment without the tax and penalties effecting it?


#2

Welcome to the community, @Johnr032189! (And what’s the significance of that date, inquiring minds want to know???)

You should be able to roll the money into an IRA, and then use $10,000 of it for a first-time home purchase without paying early withdrawal penalties. However, you will have to pay income taxes on the money.

Here’s an article about this and other options for down payments:

Please let us know if you have any follow-up questions. We love helping people get a handle on their money.


#3

Hi @Johnr032189! I’ll just second what @lweston said — I left a job with a pension several years ago and it was very easy to roll it into a traditional IRA as a lump sum. The IRA provider you choose can help walk you through the process (as can the pension administrator). We have a list of IRA providers here.

Best of luck with the home purchase!