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TankDaddy68
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| Number of Posts: | 2 |
| Registered on: | 10/14/2023 |
| Online Status: | Not Online |
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re: House Bill 31 signed. Make the switch?
Posted by TankDaddy68 on 6/27/24 at 11:22 am to Bard
This is a TRSL system not LASERS. My years of service would start over and I would stop contributing to my 401k. I could see myself sticking this job out or move to a different department for an easier workload.
In an ideal world I would find a way to finish up my social security.
401k funds, this pension system and social security coming in and I think I’d be pretty comfortable.
The house will be paid off in 5 years and I’ve got 30k in START for each of the two kids who should go in state.
In an ideal world I would find a way to finish up my social security.
401k funds, this pension system and social security coming in and I think I’d be pretty comfortable.
The house will be paid off in 5 years and I’ve got 30k in START for each of the two kids who should go in state.
1
House Bill 31 signed. Make the switch?
Posted by TankDaddy68 on 6/27/24 at 6:20 am
State workers will now have the option to switch over to the traditional teachers retirement plan. I’m currently on the optional plan that is treated like a 401k instead of the pension.
As a state worker we do not pay into social security but I do have 30 credits from other jobs.
I’ve likely got a 400k inheritance coming in the next couple of years and am 40 years old with 350k in retirement already. Worth making the switch?
Here’s the math
Stick with current plan: I put in 8% state puts in 6.2%. Currently $8600 from me, $6790 from the state. So $15k a year is what I have going in a 401k.
Switch: State takes 8% per year: $6790 and I’ll get back 2.5% of highest 5 years. I can pull at age 62 or at 20 years of service.
I’m vested at 5 years so if I quit after 5 years I have to wait till I’m 62 and I’ll get my 2.5% x years of service. If I quit before 5 years I get my 8% back.
Example 1: Switch and quit in 5 years. I would have put in 43k. I then wait till I’m 62 and I’ll pull 13,500/year till I kick the bucket.
Example 2: Switch and quit at 62. I’ll pull 54k a year till I kick the bucket.
Either example my 401k would also be paying for retirement.
As a state worker we do not pay into social security but I do have 30 credits from other jobs.
I’ve likely got a 400k inheritance coming in the next couple of years and am 40 years old with 350k in retirement already. Worth making the switch?
Here’s the math
Stick with current plan: I put in 8% state puts in 6.2%. Currently $8600 from me, $6790 from the state. So $15k a year is what I have going in a 401k.
Switch: State takes 8% per year: $6790 and I’ll get back 2.5% of highest 5 years. I can pull at age 62 or at 20 years of service.
I’m vested at 5 years so if I quit after 5 years I have to wait till I’m 62 and I’ll get my 2.5% x years of service. If I quit before 5 years I get my 8% back.
Example 1: Switch and quit in 5 years. I would have put in 43k. I then wait till I’m 62 and I’ll pull 13,500/year till I kick the bucket.
Example 2: Switch and quit at 62. I’ll pull 54k a year till I kick the bucket.
Either example my 401k would also be paying for retirement.
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