Author Topic: Need Retirement 457/ Pension/ IRA Advice  (Read 1226 times)

Jana

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Need Retirement 457/ Pension/ IRA Advice
« on: December 20, 2015, 01:40:48 PM »
I'm about to retire with a nice pension that I can live off of comfortably. I am 50 years old. I also have a 457 plan (with high fees) where I can take distributions now without penalties. Here are my options:

1. Move my whole 457 to a Vanguard IRA Account investing in a mix of VTSMX and Bond funds-makes my money tied up for another 10 years.
2. Move part of my money to #1 and start taking distributions-investing in the same accounts but not in an IRA
3. Move the whole thing to #1 and start converting my IRA to a roth little by little to avoid spiking my taxes

Any thought Mustacians? 

MDM

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Re: Need Retirement 457/ Pension/ IRA Advice
« Reply #1 on: December 20, 2015, 02:15:00 PM »
If you do #2, can you defer your pension?  If so, at what rate will the pension payments grow?

Jana

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Re: Need Retirement 457/ Pension/ IRA Advice
« Reply #2 on: December 20, 2015, 02:26:11 PM »
I can't defer the pension.

side note: I have about 250,000 in the account. $3000 a year can be payed out pretax to medical payments

MDM

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Re: Need Retirement 457/ Pension/ IRA Advice
« Reply #3 on: December 20, 2015, 03:59:25 PM »
I can't defer the pension.
So you have the pension, whether you want it or not, and it will cover living expenses.  At least for now, if the pension does not have a COLA, and maybe forever if it does.  In either case, your option #3 looks good, but we are looking only at part of the picture.

If you put all inputs into www.i-orp.com, what does it suggest in terms of Roth conversions?

Jana

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Re: Need Retirement 457/ Pension/ IRA Advice
« Reply #4 on: December 20, 2015, 09:10:42 PM »
Yes, it has COLA. Off to take a look at the calculator. Thanks!