I have a defined pension from my employer. My wife has a defined annuity from her employer (teacher). We have no options with her retirement payout. I would like to model the differences between taking my retirement as a lump sum payment vs lump sum to purchase an IRA (or Roth IRA)vs taking a standard monthly payout.
Could you please offer advice on how to enter this data into ESplanner ?
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RSS
In the first case, you set up your pension as an annual payment and check consumption. Copy that profile (click on the folder and "save as") and then delete the annual pension and enter that amount as a lump sum. You'll have to get that amount of lump sum from the pension plan documents. Finally, run it a third time by deleting it from lump sum pension and put that amount in an IRA. (but are there rules about how much IRA you can contribute in any given year?)
Dan
I have worked my way through the first 2 scenarios. Having a problem understanding how to receive my pension amount and then show it going into an IRA. For a roth I would show this as a taxable event and for a regular IRA I would show this as non taxable. What are the steps to 1) receive my pension amount 2) purchase an IRA (roth or regular) ?
What is the difference between the "Choice of annuity" on retirement accounts and "annuities" tab on the Pension and Annuities ?
Choice of annuity asks you how you wish to annuitize the assets in your retirement accounts.
Annuities in Pension and Annuities are exogenous annuities that you already have in your possession (or are planning to buy) that do not involve using up your retirement assets.
Best,
Dick Munroe