If you roll your distribution over to a qualified plan, you will not have to pay taxes on the amount rolled over. However, when you receive your benefit from the qualified plan it will be taxed. The tax will be recovered when you receive your pension from us. Basically; a portion of your pension benefit will be non-taxable until your post-tax contribution has been fully repaid to you. When your post-tax contribution has been fully recovered, the remainder of your benefit will be taxable. The post-tax contribution must be recovered over a set number of monthly payments. The IRS determines the rate of recovery (tax basis recovery).