Author Topic: Pension - cashout, take now, rollover, wait?  (Read 1761 times)


  • Stubble
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Pension - cashout, take now, rollover, wait?
« on: May 06, 2014, 09:01:23 PM »
I'm leaning towards rolling it into an IRA, although I am not sure between doing a tIRA or rIRA. If I do a rIRA I could syphon more in than I normally could. An option would also be to wait and take it at 65, although I think the market will let me end up with more after 30 years remaining of investment time. Apparently I could also take it now and get it for the rest of my life, but that amounts to only roughly $20 a month. Any better option?


  • Walrus Stache
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Re: Pension - cashout, take now, rollover, wait?
« Reply #1 on: May 08, 2014, 08:56:00 PM »
Can't answer without relevant information.

How much would you get if you cashed it out?

Can you roll it directly to an IRA, or is it a taxable event?

Exactly what would you get if you started taking it now? Precise numbers, please.

How much would you get if you waited for 65?

Does the value inflation adjust if you start taking it now? What about waiting til 65?

Is there any chance you will go back and work in a job under the same pension plan, or one which can be used in conjunction with the plan?

For example, if you figure on a 4% safe withdrawal rate, $20/month is equivalent to about $6,000 invested with a simplistic calculation. However, that changes depending on whether the $20/month inflation adjusts or not.
« Last Edit: May 08, 2014, 08:59:27 PM by TomTX »


  • Stubble
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Re: Pension - cashout, take now, rollover, wait?
« Reply #2 on: May 09, 2014, 09:45:02 PM »
Nothing inflantion adjusted from what I can tell.

On retirement, $333/month, right now, $24/month. Lump sum would be $7,119. I can roll it to tIRA directly, so no taxes - if I took it, it would most likely push me to 25% bracket, plus the 10% fee.

I like the 'gauranteed amount', but pretty sure 30 yrs from now would be better off investing it, and i would actually 'have' the money too. Leaning towards the tIRA direct rollover into vanguard.


Wow, a phone plan for fifteen bucks!