I have a governmental 457b that I am currently contributing double catch-up max to. I will be leaving the government job likely within the next three years. Could be in one year or could be 3. My question is I am currently age 51 and at the oldest I would be 54 when leaving. Understanding that the government 457b has the option of withdrawing the funds penalty free at any age upon separation of employment if I roll it over to a vanguard ira I would essentially be losing at worst the ability to withdraw from the 457b penalty free from age 51-59.5 or if at 54 then from 54-59.5.
The fees in the 457b are not that great. Range of .40 to .67
My point is if I have enough in my vanguard taxable to cover any withdrawals I need from 51 (or 54) to 59.5 then need I really be worried about the 457b benefit? I can just roll it over to a vanguard ira and start any withdrawals from taxable as needed.
Vanguard taxable = 450,000 vtsax
457b = 710,000 small caps large caps and s&p 500 index
Paid off home 650k
Medical covered fully in retirement by employer
Planned retirement expenses are 90,000/year. In previous posts I indicate a much less spend and I realize that 90k is a big spend but I am planning for potential relationship changes and also I live in a hcol area with property taxes alone in the 14,000 per year range on a 650k home. (That I must continue to maintain) SS income will be 2200/ year at 62.
Pension at 54 will cover 70,000 a year non cola adjusted before taxes.
am I thinking of this correctly? I see no reason to leave the funds there and allow them to incur the fees.
Essentially I would have at the time of leaving the job 1,200,000 in vanguard split between ira and taxable and 70,000 pension yearly and SS kicking in at 62.
The scenario never fails in cfiresim. I provided a ton more information maybe than required but the question is move the 457b to vanguard ira or not? Would I be hit with the same rmd’s in a 457b vs an ira down the line?
Any advice and comments and face punches are always welcome. Thanks!