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re: Can someone dumb down and explain TRSL and Louisiana employee's retirement options?
Posted on 8/25/19 at 10:05 am to LSUtigerME
Posted on 8/25/19 at 10:05 am to LSUtigerME
This is what LSUHSC offers my wife
1
Posted on 8/26/19 at 9:25 am to TheWiz
quote:
1)TRSL is not optional. They take 8% of every paycheck. This will be paid out as a pension after retirement. It sucks for people who actually know what the hell they're doing because I'm pretty sure I would be better off throwing that 8% into the overall market for 30 years. But, most people are unbelievably irresponsible so we need the government to protect us all.
You may want to use a calculator because it's not even close
Posted on 8/26/19 at 10:14 am to jralspanky
quote:I was adding the 8% to my Roth contributions. I'm not saying the 8% alone would be greater.
You may want to use a calculator because it's not even close
Those contributions would be about 400k over 30 years.
This post was edited on 8/26/19 at 10:23 am
Posted on 8/26/19 at 11:37 am to bayoubengals88
The TRSL website has a comparison calculator somewhere on there. The amounts are very comparable unless you get really aggressive with your hypothetical returns.
It all really boils down to one major question: Will you actually stay at the job for 20-25 years?
If you know for a fact you will leave, then it probably makes the most sense to take the 401a rather than the pension.
It all really boils down to one major question: Will you actually stay at the job for 20-25 years?
If you know for a fact you will leave, then it probably makes the most sense to take the 401a rather than the pension.
Posted on 8/26/19 at 11:57 am to TheWiz
quote:There's probably less than a 10% chance that I will.
It all really boils down to one major question: Will you actually stay at the job for 20-25 years?
I'm relying on the rollover. Is there no penalty in that case?
This post was edited on 8/26/19 at 11:58 am
Posted on 8/26/19 at 1:07 pm to bayoubengals88
401(a) Rollover Rules
401(a) rollover rules are similar to what they are for the rollover of other tax-sheltered retirement plans. You can roll the proceeds of the plan over to the qualified plan of another employer (if the future employer accepts such rollovers), or into a traditional or self-directed IRA account.
The following exceptions apply to rollovers from a 401(a) plan, and they are common exceptions on all retirement plans. You cannot rollover money from the following sources:
Required minimum distributions
Substantially equal period payments
Hardship distributions
Amounts distributed to correct excess distributions
Amounts that represent loans from your plan
Dividends from your employer-issued securities (not likely with government or non-profit employers)
Life insurance premiums paid by the pan
Much as is the case with 401(k) plans, you can also either roll the plan balance into a traditional IRA, do a Roth IRA conversion, or a combination of both.
There is a bit of a complication with 401(a) rollovers if the plan includes both pretax and after-tax contributions. If the rollover includes after-tax contributions, this will represent a cost basis in your IRA.
401(a) rollover rules are similar to what they are for the rollover of other tax-sheltered retirement plans. You can roll the proceeds of the plan over to the qualified plan of another employer (if the future employer accepts such rollovers), or into a traditional or self-directed IRA account.
The following exceptions apply to rollovers from a 401(a) plan, and they are common exceptions on all retirement plans. You cannot rollover money from the following sources:
Required minimum distributions
Substantially equal period payments
Hardship distributions
Amounts distributed to correct excess distributions
Amounts that represent loans from your plan
Dividends from your employer-issued securities (not likely with government or non-profit employers)
Life insurance premiums paid by the pan
Much as is the case with 401(k) plans, you can also either roll the plan balance into a traditional IRA, do a Roth IRA conversion, or a combination of both.
There is a bit of a complication with 401(a) rollovers if the plan includes both pretax and after-tax contributions. If the rollover includes after-tax contributions, this will represent a cost basis in your IRA.
This post was edited on 8/26/19 at 1:08 pm
Posted on 8/26/19 at 1:10 pm to bayoubengals88
quote:
There's probably less than a 10% chance that I will.
We are going to stay with the pension. My wife loves her job and I love my job. I do wish it was somewhere else, but it is what it is.
She should be able to start drawing her pension at 58. We will use her 457 to supplement since you can touch it before 59.5. We will then use her 403b, my 401k, and our Roths once we get to the appropriate age. That should allow us to easily hold out to 67 so I can draw on whatever may be left of Social Security.
This post was edited on 8/26/19 at 1:11 pm
Posted on 8/27/19 at 12:44 pm to Croacka
You have to be in the system for a certain number of years to qualify. I’m not sure of the exact number of years and the correlating percentage but it’s something like
2-5 years 10%
5-10 years 25%
10-20 years 50%
And 25+ years 100%
I looked in to dropping it for my retired military insurance but my military stops when I reach Medicare age so as of now I have the state’s insurance.
2-5 years 10%
5-10 years 25%
10-20 years 50%
And 25+ years 100%
I looked in to dropping it for my retired military insurance but my military stops when I reach Medicare age so as of now I have the state’s insurance.
Posted on 8/27/19 at 3:23 pm to brass2mouth
quote:
And 25+ years 100%
That's incorrect.........Salary x 2.5% x years of service. At 30 years that's 75%
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