I FIRE'd in July 2009. Since then I have continued on the payroll as a "consultant". Didn't really do a whole lot in the last 6.5 years other than answer a few questions from lawyers. It really was more like a non compete.
Well that arrangement is coming to an end on December 31st. So now I have to decide what to do with the pension from megacorp. Sure could use some help from the pension wizards on the site with my decision.
100% joint survivor starting 1/1/2016= $3047 per month. Non cola'd.
100% joint survivor starting 1/1/2023= $3657 per month. Non cola'd.
Lump sum option= $658k. Immediateannuities.com shows a $2813 per month joint survivor payment.
100% joint survivor starting 1/1/2023= $1250 per month. Non cola'd.
Social Security: Roughly $60k between the two of us in 2028 (70.5).
Current 401k/TIRA: $1.25m. Projected 401k/TIRA balance at 70.5 is $1.9m (see below).
Other income: I serve as an "advisor" to a company in which I receive $120k per year in 1099 income. I put about $50k of that into a solo 401k. This will continue until at least 2028.
We live off 1099 income and dividends. No need to tap tax deferred in foreseeable future.
Schwab RMD calculator shows required withdrawals of $102k starting at 70.5. So income at 70.5 is as follows:
Pension 1 (if take at 65): $44k
Pension 2 $15k
1. Should I start pension 1 now or wait to 65?
2. Should I do Roth conversions from 401k/TIRA even if it bumps me up to 33% tax bracket? Currently in 28% bracket.
3. Should I continue putting 1099 income into solo 401k?
I am going to run these scenarios through IORP as, if I recall, it is pretty good at identifying sequence of withdrawals. At this point I am thinking take pension 1 now and continue to dump $$$ into the solo 401k.
Thanks for your help folks! If more info is needed just ask.