The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Jana on December 20, 2015, 01:40:48 PM
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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?
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If you do #2, can you defer your pension? If so, at what rate will the pension payments grow?
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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
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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?
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Yes, it has COLA. Off to take a look at the calculator. Thanks!