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Started By
Message
Quit teaching, what to do with retirement?
Posted on 6/19/17 at 5:58 pm
Posted on 6/19/17 at 5:58 pm
A year ago I left teaching to become an operator baw! I have six years worth of Louisiana public school retirement that I am withdrawing this month. When I stopped teaching I opened up a ROTH IRA and have been depositing money in there as if I never stopped from my usual teaching amount.
For retirement purposes should I:
A) put it into the ROTH that I have
or
B) Do something different (if so what?)
For retirement purposes should I:
A) put it into the ROTH that I have
or
B) Do something different (if so what?)
9
Posted on 6/19/17 at 10:06 pm to Rossberg02
For retirement purposes should I:
A) put it into the ROTH that I have YOU WOULD NEED TO PAY TAXES ON IT TO CONVERT TO ROTH I THINK
or
B) Do something different (if so what?)
Roll over to traditional IRA; no taxes due
A) put it into the ROTH that I have YOU WOULD NEED TO PAY TAXES ON IT TO CONVERT TO ROTH I THINK
or
B) Do something different (if so what?)
Roll over to traditional IRA; no taxes due
Posted on 6/19/17 at 10:08 pm to Rossberg02
Congrats on quitting teaching; that's the first step to retirement
Posted on 6/19/17 at 11:39 pm to Rossberg02
quote:
A) put it into the ROTH that I have
When I changed states teaching from MS to TN, I rolled it over into a Roth. Be warned that tax day will suck a lot. In six years, there's a lot of money in there. I would discuss with my CPA on how to ease the burden and do the rollover over a few years.
Posted on 6/20/17 at 6:07 am to House_of Cards
quote:
I rolled it over into a Roth. Be warned that tax day will suck a lot.
The OP stated that he opened a Roth when he quit. He didn't say that he rolled something into a Roth.
Posted on 6/20/17 at 11:37 am to makersmark1
I am trying to avoid the paying of taxes on this money.
Are there any other options to gain a good return?
Are there any other options to gain a good return?
Posted on 6/20/17 at 11:41 am to schwartzy
quote:
Congrats on quitting teaching; that's the first step to retirement
Off topic but .... This!
I earned more money between 30-33 than my mother earned in 25 years teaching.
Posted on 6/20/17 at 12:07 pm to Rossberg02
This should be tax advantages money. You can either roll it into a Roth or a regular IRA. If you roll it into a Roth, it will be taxable now but not taxed when you begin taking distributions. If an IRA, not taxed now but withdrawals will be taxed.
As to returns, your investment goals are affected by your risk tolerance and time horizon among other factors. Most on this board would recommend low cost ETFs. I agree that this the best course for most investors.
Good luck.
As to returns, your investment goals are affected by your risk tolerance and time horizon among other factors. Most on this board would recommend low cost ETFs. I agree that this the best course for most investors.
Good luck.
Posted on 6/20/17 at 12:19 pm to mule74
I'm making close to double what I was while teaching. I'm 33 and want to be out the workforce by 60. I'm not big on risking a lot.
Posted on 6/20/17 at 12:20 pm to Rossberg02
What are you going to do with the extra money you made coaching football?
Posted on 6/20/17 at 3:33 pm to LigerFan
That exorbitant stipend went to bills back then! Teaching and coaching didn't amount to much.
Posted on 6/20/17 at 3:48 pm to Rossberg02
quote:
I'm making close to double what I was while teaching. I'm 33 and want to be out the workforce by 60. I'm not big on risking a lot.
Hard to retire at 60 without taking some risks in your 30s
Nows the time to do it
Posted on 6/20/17 at 4:05 pm to Croacka
What is a reasonable risk that I should be looking at? I understand I can lose a good bit or not earn anything for a year here and there but what's too much?
Posted on 6/20/17 at 4:26 pm to Rossberg02
quote:
That exorbitant stipend went to bills back then! Teaching and coaching didn't amount to much
But you took Southeast Middle to a few championships, so that's all that matters, right?
Posted on 6/20/17 at 4:57 pm to LigerFan
Can't say I took them. It was all the kids' doings.
That and I never taught at a Southeast Middle baw.
That and I never taught at a Southeast Middle baw.
Posted on 6/20/17 at 6:26 pm to Rossberg02
how old are you? It might make the most sense to leave it where it is depending on your age. Since you have 6 years in, you are considered to be vested so there a few things to consider-
If you were making 50K a year, that would be equal to $500 a month starting at age 60 for the rest of your life without paying state income tax on that money.
quote:
Upon termination of employment, members with five or more years of service credit can leave their contributions with TRSL and begin receiving a TRSL benefit at age 60
If you were making 50K a year, that would be equal to $500 a month starting at age 60 for the rest of your life without paying state income tax on that money.
quote:
If seeking a refund, members with five or more years of service credit will need to complete both the Application for Refund (Form 7) and a Request for Refund Rather than Retirement Benefit (Form 7E). Form 7E must be notarized, and the signed original returned to TRSL before a refund disbursement can be issued.
quote:
If any portion of your refund is eligible for a rollover into another qualified retirement plan, but is instead paid directly to you, TRSL is required to withhold an additional 20% of the sheltered distribution for federal income tax.
Rollovers of sheltered contributions to a Roth IRA are considered taxable distributions, but not subject to the mandatory 20% withholding. TRSL does not offer income tax withholding for any distribution to a Roth IRA.
If you take a refund before the age of 59½, you may also be subject to an additional 10% federal withholding penalty for early withdrawal of retirement funds. This penalty is in addition to any income taxes owed.
Posted on 6/20/17 at 6:32 pm to TigerintheNO
33 years old. I wasn't making 50k. It ranged from 41-46 from beginning to end. I did not know that I could leave it and still earn money.
Posted on 6/20/17 at 6:39 pm to Rossberg02
Damn, thought I knew you
Posted on 6/20/17 at 6:46 pm to LigerFan
Figured you thought you knew me. That's why I kind of went along with it.
Posted on 6/20/17 at 6:46 pm to Rossberg02
quote:
33 years old. I wasn't making 50k. It ranged from 41-46 from beginning to end. I did not know that I could leave it and still earn money.
You get paid 2% per year of service (12%) of the 3-5 year average of your highest salaries.
Now at any time in the future you start working for the state again, add another 2% a year for each year of work.
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