Pesnion Plan terminated

[freeme0215]

Hello,

I just learned, after filing BK on 6-23-10 that my defined pension plan had been terminated and that there is a lump sum to be paid to all plan participants. The lump sum is 2000 dollars. Since this pension plan money what is my obligation to report this development? I would also like to know, if they can take this money from me? As I said I filed on the 23d of June and received notice on 7-16. I have a 341 hearing Tues the 27th of this month.

Thanks

[jange]

You should tell your attorney. At the 341 the trustee is going to ask you if anything changed. Plus I had to provide copies of my 401K statement along with the bank statements etc.
Assuming this is pretax money and you are not old enough to take it, if you don't roll it over into an IRA or 401K you are you to be taxed and also pay early withdraw penalities, so there won't be much left anyway.

filed 1/11/10
confirmed 7/22/10

[Flamingo]

You will be provided roll over information by your employer so you can avoid taxes and penalties. If you want to accept a lump sum amount, you will have taxes taken out, etc. and will have to report the amount to your attorney. If you roll it over, you don't have an issue.

[freeme0215]

SInce the plan was terminated and I was not informed till it was "to late to rollover" at least that is what the rep handling the pension plan payouts told me when I called..

She said I had to take the money and that there would be taxes and it would count as income....that is why I am not sure of the money status in regards to the BK, I live in Florida.

Thanks again

[ABC]

SInce the plan was terminated and I was not informed till it was "to late to rollover" at least that is what the rep handling the pension plan payouts told me when I called..

She said I had to take the money and that there would be taxes and it would count as income....that is why I am not sure of the money status in regards to the BK, I live in Florida.

Thanks again

3

Don't cash that check. Speak with a financial planner first who does not work for the company paying you out.

[catleg]

It is post-petition money, not necessarily belonging to the estate (though it could be considered "income" if you do not roll it over).

Talk to someone like Fidelity or Schwab about putting that money into a self directed rollover IRA.

They probably have someone who knows what to do.