Rich_by_the_Bay
Moderator Emeritus
My replacement at work started yesterday. I am being deliciously ignored (well, OK, it does bring me a twinge of nostalgia), and by the end of the month I will terminate all scheduled duties. I'll stay on the roster for HR purposes til end of October to collect an incentive payout from the 2010 academic year.
So help me out on some details: I anticipate a big drop in income in 2011 but will still stay in a highish (probably 28%) tax bracket that year due to final payouts after Jan. In other words, I think it would be best tax-wise to defer any income to 2012.
1. I have a 403b and 401A which will be rolled over to my IRA after complete termination.
2. My 457 (nongovernment) can be taken as a lump sum any time between about Jan 2011 to 8 years out (age 70.5). I think I will leave it where it is, though I heard that private 457 money is subject to the financial stability of the employer.
3. I have an unused time-off payout which will need to be taken in 2011. Straight income in a high tax year, alas.
4. The institute that I consult for in Las Vegas 5 days a month has made me a part-time employee rather than a 1099 consultant (it's an inducement to stay around, higher benefits, etc). Effective Jan 2 I can participate in their 403b. I am thinking about maxing that out by front-loading my entire paycheck for a couple of months, including a small match. That should help keep earned income lower in 2011.
5. I plan to convert all my qualified money to an equity indexed variable fixed living and death benefit inflation adjusted annuity. ... Just kidding.
Any flaws? Am I missing any angles (financial or otherwise)?
So help me out on some details: I anticipate a big drop in income in 2011 but will still stay in a highish (probably 28%) tax bracket that year due to final payouts after Jan. In other words, I think it would be best tax-wise to defer any income to 2012.
1. I have a 403b and 401A which will be rolled over to my IRA after complete termination.
2. My 457 (nongovernment) can be taken as a lump sum any time between about Jan 2011 to 8 years out (age 70.5). I think I will leave it where it is, though I heard that private 457 money is subject to the financial stability of the employer.
3. I have an unused time-off payout which will need to be taken in 2011. Straight income in a high tax year, alas.
4. The institute that I consult for in Las Vegas 5 days a month has made me a part-time employee rather than a 1099 consultant (it's an inducement to stay around, higher benefits, etc). Effective Jan 2 I can participate in their 403b. I am thinking about maxing that out by front-loading my entire paycheck for a couple of months, including a small match. That should help keep earned income lower in 2011.
5. I plan to convert all my qualified money to an equity indexed variable fixed living and death benefit inflation adjusted annuity. ... Just kidding.
Any flaws? Am I missing any angles (financial or otherwise)?