PawPrint53
Recycles dryer sheets
- Joined
- May 25, 2012
- Messages
- 194
Regarding enhanced early retirement at a megacorp, we're exploring the pros and cons of taking the employer pension as a monthly annuity or getting the lump sum rolled over into an IRA. We'd have to start taking distributions of the pension now to get the 100% survivor benefit. The pension amount does not have any inflation adjustment, and when we die any $ goes back to the company, assuming there's a company. Rolling it into an IRA will also guarantee that the surviving spouse gets 100% plus any $ left over after death of both goes to beneficiaries. We can also convert some yearly to a Roth to avoid RMD. However, getting the IRA to generate as much income as the pension does for a lifetime sounds challenging. I remember my sister having a colleague who took a lump sum rather than the pension. My sister still has money rolling in; her colleague had to go back to work. One of us is 61 years old, BTW, the other is 59 1/6.
The hope is that my DH will get a job at some point so next year we can start contributing to the Roth again at the very least.
Thanks for any thoughts on the subject.
The hope is that my DH will get a job at some point so next year we can start contributing to the Roth again at the very least.
Thanks for any thoughts on the subject.