Al18
Thinks s/he gets paid by the post
In my case, I worked the last 3 months at 20 hrs per week over 2 1/2 days. It gave me a sense of being retired.
Targeting early May for retirement (or transition to casual part-time) - noting that I'm required to provide 3 months notice. Reasons as follows -
1. Annual incentive comp distribution takes place in mid to late April
2. Should allow me to accumulate another year of maxed SS
3. Have stock options that vest on May 1
4. Want to retire into good weather / golf season
I made my last day December 1st. My vacation time payout carried me through the end of the month and was able to keep my health insurance through the end of the year also.
Then January 1st started a fresh new tax year.
Please explain "accumulate another year of maxed SS".
Just a guess, but I wonder if they're a highly-compensated employee, and make enough that they actually hit the max SS threshold in mid/late April? I think it's around $160K for 2023.
I'll never make enough to break the SS threshold, but I'm at least to the point where I hit 35 years of SS wage income in 2020. So to calculate my SS benefit, they don't have any zero years in there at least. And I only have to work a few months into the new year, to make enough that it would replace one of those low-earnings years.
So maybe they're in a similar situation?
That's a great point. Our contribution limits reset on July 1 so I will have those 6 months to max out my contribution for that last year. I usually front load all my contributions anyway so I get the full year impact.
You may want to make a large amount of it ROTH 401K contributions if you have that available, since the yearly income will be low the last year, and most folks find they have way too much in IRA and little in ROTH accounts.
Please explain "accumulate another year of maxed SS".
Well my plan is to give two weeks notice for retirement date. I'm not sure what would be the reason to negotiate so much time assuming everything else is aligned. When they decide to layoff they do it right away.He asked for six months and we negotiated that down to six weeks.
Well my plan is to give two weeks notice for retirement date. I'm not sure what would be the reason to negotiate so much time assuming everything else is aligned. When they decide to layoff they do it right away.
Apologies for the shorthand. My 2024 earnings - given incentive comp payment in April - should be enough to hit the SS earnings limit for 2024. This will replace a lower earnings year as I have 35 years working, but my early years were low earnings years.