Some people today are faced with receiving their pension in a lump sum payment, either because they are being bought out by their company and more or less forced to retire early, or they chose to retire early and take the lump sum. To avoid having a hefty tax penalty forced upon you by taking out your pension plan before retirement age, you may want to consider a Toronto pension rollover.
A pension rollover allows you to place the lump sum payment into a retirement plan such as an IRA or 401K. You can talk to a financial planner who can guide you towards a plan that would suit your needs the best. You must rollover the pension during a certain time frame as waiting too long could mean paying a large tax penalty. Your financial planner will know how much time you have to relocate the pension.
If you are close to retirement, your financial planner may suggest a safer plan to place the pension money, but if you are years from retirement, he may suggest a plan that has a little more risk, but could result in a good return. Go over all options when faced with a Toronto pension rollover.