Be sure to watch out for the tax bite when choosing between a traditional or Roth individual retirement account. Thinkstock By Kimberly Lankford, Contributing Editor From Kiplinger's Personal Finance, April 2015 I’m looking into options for rolling over a pension payout. Can I roll it over to a Roth IRA? --T.L., El Paso, TexasSee Also: 10 Things You Must Know About Traditional IRAs You generally can roll a pension lump sum into a Roth IRA, but that may not be a good idea. You’ll have to pay taxes on the rollover, as you would with any Roth conversion, and a big conversion in one year could bump you into a higher tax bracket or have other ripple effects, such as making you subject to the Medicare Part B and Part D high-income surcharges. Another option is to roll the pension money directly into a traditional IRA, which creates no new tax bill, then gradually convert some of the money to a Roth every year. If you use that approach, keep an eye on your tax bracket and other income limits. Got a question? Ask Kim at email@example.com.