One more step for man...

[Emeritus]

There are two types of 457 which are treated differently. Years back I had a public 457 from a state university and I was able to roll that over with no problem. The current private 457 is what is sometimes called a "top hat" plan and I am required to take it no sooner than 60 days after retirment and no later than the year I turn 70.5. Att that time it is treated as ordinary income.

Though I was a full-time academic, my employment was passed through an academic hospital, hence the private designation of my 457.

You are describing the difference between 457 (b) and 457 (f) plans. Unless an academic hospital is a for profit, it should have a 457 (b) . All the "academics" I know even at for profit hospitals work for a 501 (c) 3 non profit that contracts to the hospital. They have to do it tha way to be eligible for research grants

I know of a lot of disasters with 457 (f) plans aka Rabbi trusts . You are just a general creditor of the for profit.

VII. RABBI TRUSTS
A. General Definition.
1. In a nonqualified unfunded deferred compensation plan, the employee, generally, is an unsecured general creditor of the employer subject not only to the solvency and credit risks of the employer, but also to the employer's good faith payment of benefits. As a practical matter, delay and expenses associated with litigation to enforce a right to unfunded deferred compensation against a solvent employer can substantially reduce or eliminate the value to an executive of such benefits.
Current Developments In Executive Compensation - Law Firm Lum, Danzis, Drasco & Positan, LLC Attorneys Roseland, New Jersey

 

[Dawg52]

Hey ! If you enjoy the part time work go for it . Some of us ( me included ) would be bored stiff without a little job ( mine being ebay ) . Some people like golf,bridge or endless lunches we like getting some fun money for doing something we enjoy .

Hey, I won a total of $5 last week playing golf.

 

[Koolau]

Someone suggested using a tax advisor. I agree. Tax rates will most likely go up, so it will be difficult to be precise in your planning, Rich.

One thing that concerns me, personally, so I mention it to you, is tax deferred money and the dreaded RMDs. If next year you are way down in the 28% bracket you might consider getting "rid" of some tax deferred money, either by taking it as cash or rolling into a Roth. That way, RMDs will be somewhat reduced. Once RMDs begin, you have lost quite a bit of flexibility in "naming your tax bracket" (assuming you have significant deferred money).

All in all, if you'll pardon the slight envious tone here, your tax issues are probably the good news rather than the bad news.

 

[Rich_by_the_Bay]

Someone suggested using a tax advisor. I agree. Tax rates will most likely go up, so it will be difficult to be precise in your planning, Rich.

One thing that concerns me, personally, so I mention it to you, is tax deferred money and the dreaded RMDs....

All in all, if you'll pardon the slight envious tone here, your tax issues are probably the good news rather than the bad news.

All good points.

Too much math. Definitely a trip to the accountant is in order.

 

[obgyn65]

Hi Alan - any clinican using the word "terminate" when talking about / referring to a patient should be disciplined - and rightfully so.

As I read this line I interpreted "duties" as "patients". I think Doctors should think twice before using words such as terminate.

Congratulations on moving to ESR phase 2.