Aloha Amazing Mustachians!
I am saving 48% of my income. I have a 403b, and 457, and a pension. The pension is mandatory at 7%. At 5 years the pension money becomes a guaranteed annuity (that you can start taking as early as 55). Before 5 years it's just a check. I want to get preggers, give birth, and quit my job before the 5 year mark, and not work for that year after the birth, is there any way I will be able to allocate my pension money without it being taxed? I'm assuming it would be taxed at 10% because of the bracket that goes up to $9,525. We are planning for me to receive my pension check in a year that I have no other income, and my pension check will likely be less than $20,000.
Tax Optimization strategy! How can I minimize the taxes on this pension? Could I roll it over to a certain type of account? Could I roll over half of it to a tax deffered account?
Or, is there another way we could be going about our finances?!
My husband is also saving (somewhat less) in his retirement accnts and he may continue to work while I care for the baby.
So this is the other factor, we are married. I have a large student loan on an income-based payment plan. He has none. We are assuming we will file separately. Any reason not to?
Thanks so much for any advice!
E2