srakasecure.blogg.se

1. Open turbotax 2016 file reddit how to#
2. Open turbotax 2016 file reddit portable#

Your Employer Match for those first 5 years is yours to keep forever - and even if you stop working at that employer. Every year you work, that increased 3-year-average salary not only applies to the pension service you earn that year, but to all the previous years too! There is a snowball effect - so you really don't earn much value in your pension during your first 5-10 years, but once you have been there 25 years, each additional year of work earned you a ton more value, because the increase applies to all the previous years as well.Ī DC plan on the other hand - you earn much more early on. This is because a final-average-pension pay plan is designed to strongly benefit career employees because it provides them with inflation protection and income replacement % protection ** but only until they stop working **. If you work for the next 5 years at the private institution and then switch jobs, move across the country, switch careers, switch employers in the same job, etc etc - the Employer Match is definitely the better option. If you work at the municipality for the next 30 years, there is a protection on the pension (where they cannot stop future accruals once you start participating - private pensions do not have this, but some public systems do), then the pension will almost definitely be the better option. I'd run some numbers to see where you would come out ahead. You're literally looking at 0.5%-1.5% more than your pension, although for possibly a longer time period. If you take the private institution, then your retirement account will probably be entirely market-based whereas with the state of NJ you'll have the pension in case the market doesn't do well for your retirement fund, if the pension does offer a retirement account. I'm charged $6.75 per quarter per account.ĭo you have the option to open a 457b/(Roth) 401K/and there's a third one as well that I can't remember alongside your pension? Changing jobs is one of the quickest ways to wage growth.ĭoes TIAA Cref charge fees for maintaining your account(S) with them? Are they the flat fee based? Or the possibly more expensive percentage-based fee so the more money you earn, the more TIAA Cref takes out? If there are fees associated with TIAA Cref, are they monthly, every two months, quarterly, etc.?ĭoes the pension charge a quarterly fee? I have one, but in a different state.

Open turbotax 2016 file reddit portable#

Personally I prefer defined contribution plans over defined benefit plans for the simple reason that they're more portable and the money is in my name. You can start withdrawing from your 401k at 59.5 years of age and if you get hit by a bus before that, the entire thing passes to your heirs. At a safe withdrawal rate of 4%, you're looking at ~$31k-44k/year, also in perpetuity.

Assuming the same 30 year tenure, and an 8% average net return, your account will be worth a minimum of $778,935 on the low end (probably closer to $1.1M once you factor in contribution increases).

You'll contribute $6,875-$7,700 per year to your 401k, all tax-deferred. In the private job, you'll pay $2,750 per year, your employer will contribute $4,125-$4,950 per year depending on age. So you'll pay $123,750 over 30 years in today's dollars, and get back $27,500 per year in today's dollars (assuming COLA is exactly at the rate of inflation) for the rest of your life after you turn 65. In the state job, you'll pay $4,125 per year, and assuming 30 years of service, you will get half of your last 3 years salary. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit.

Open turbotax 2016 file reddit how to#

Get your financial house in order, learn how to better manage your money, and invest for your future. Private communication is not safe on Reddit.