Any Kaiser (TPMG) docs here?

[dockdny]

Hi first-time poster here -- my spouse is a TPMG physician who joined Kaiser when he was 46 years old in 2016 (after a decade or so in private practice). He would like to consider early retirement in 2026, when he would be 56 years old. Would he qualify for any pension at all in Plan 1 with < 15 years of service and < 60 years old? The Plan 1 rules are confusing since he would not meet the criteria for "Full Early." Greatly appreciate any insight. Thanks!

[fatlittlepig]

Hi first-time poster here -- my spouse is a TPMG physician who joined Kaiser when he was 46 years old in 2016 (after a decade or so in private practice). He would like to consider early retirement in 2026, when he would be 56 years old. Would he qualify for any pension at all in Plan 1 with < 15 years of service and < 60 years old? The Plan 1 rules are confusing since he would not meet the criteria for "Full Early." Greatly appreciate any insight. Thanks!

You are vested in plan 1 (pension) after 5 years of service, so he would get a pension benefit starting at age 65. Even if he left next year after 5 years of service he would get a pension at age 65.

[burritos]

You are vested in plan 1 (pension) after 5 years of service, so he would get a pension benefit starting at age 65. Even if he left next year after 5 years of service he would get a pension at age 65.

Is that considered taxable income?

[dockdny]

Thanks for your reply -- just so I am clear, would the Plan 1 pension amount be 2% of the highest average compensation (HAC) earned per year of credited service (so in this example, 2% of HAC x 10 years) that would start at age 65 for the remainder of his lifetime? I am assuming this is taxable as regular income. Would he be eligible for any of the health insurance benefits if he retired at age 56 with 10 years of service? Thanks again -- the literature we have is so confusing and not clearly applicable to our situation, much appreciate the replies.

[fatlittlepig]

Thanks for your reply -- just so I am clear, would the Plan 1 pension amount be 2% of the highest average compensation (HAC) earned per year of credited service (so in this example, 2% of HAC x 10 years) that would start at age 65 for the remainder of his lifetime? I am assuming this is taxable as regular income. Would he be eligible for any of the health insurance benefits if he retired at age 56 with 10 years of service? Thanks again -- the literature we have is so confusing and not clearly applicable to our situation, much appreciate the replies.

I am not an expert with the benefits but if he were to retire at age 56 with 10 years of credited service, he would be eligible for pension of approx 20% of highest average compensation starting at age 65. No health benefits unless you work until 60 with 15 years of service. If you go to netbenefits you can model your pension payout with different scenarios.

[StarTrekDoc]

Thanks for your reply -- just so I am clear, would the Plan 1 pension amount be 2% of the highest average compensation (HAC) earned per year of credited service (so in this example, 2% of HAC x 10 years) that would start at age 65 for the remainder of his lifetime? I am assuming this is taxable as regular income. Would he be eligible for any of the health insurance benefits if he retired at age 56 with 10 years of service? Thanks again -- the literature we have is so confusing and not clearly applicable to our situation, much appreciate the replies.

IIRC: for EARLY retirement if it was being allowed; 55 years with 10 years is needed -- but standard was 60 yrs with 15 yrs for regular retirement -- for lifetime insurance benefit.

Plan 1 is vested at 5 years. 2% HAC starting 65. with a 4.6% per year penalty if draw started before 65. Single life pension is the standard; but you have other options too

[Rapunzeldances]

So I am not yet partner but was hoping someone could explain more about the March bonus. Do you have to buy the optional C share to get this? What is the typical amount you see for the March bonus? Also, does anyone think it is worthwhile to buy the optional c share when you make partner? Trouble understanding how it would be worthwhile given the cost, unknown what the long term value will be as it can’t rise forever, and isn’t backed by anything concrete. Do you get annual dividends on it?

[fatlittlepig]

So I am not yet partner but was hoping someone could explain more about the March bonus. Do you have to buy the optional C share to get this? What is the typical amount you see for the March bonus? Also, does anyone think it is worthwhile to buy the optional c share when you make partner? Trouble understanding how it would be worthwhile given the cost, unknown what the long term value will be as it can’t rise forever, and isn’t backed by anything concrete. Do you get annual dividends on it?

no need to buy C share to get March bonus. Whether you purchase the optional C share depends on your financial situation and your outlook.

[tonyjerry]

Can you please explain the C share. How much it costs, how the valuation is determined, when you can sell etc? I have a chunk of money sitting in a money market and thinking about investing it but might hold off as ill be up for partner soon.

[spoudaios]

I’m glad to find there are many TPMG docs in WCI forum. I just finished residency and started working with TPMG for about 2 weeks now.

I apologize for hijacking the forum. If the moderator feels I should post this separately, please let me know.

I have a few questions for the seasoned TPMG docs in here.

I am 41 yo and Canadian citizen. I have Canadian student loan that I’d like to pay off ASAP. Main reason is that the collateral is under a good friend of family and I’d like to pay it off as to remove the burden from them.

I live in an expensive area but plan to buy a house here in a few years or so with the TPMG home loan in addition to my own savings for downpayment. I plan to live like a resident at the moment. I don’t plan to buy a new car anytime soon although my car is 15 year old, it still drives pretty well.

1. I think I read in the forum that I need to max out my 401k, which I plan to do. But what about the back door Roth IRA? Am I eligible for this since I just started with TPMG? Is this also through Fidelity?
I don’t think I’m eligible for other retirement plans since I just started. I think once I become partner, then I will be. My spouse is non-physician who works in the military. I’m not sure if this makes any difference.

2. As far as buying a house, my plan is to buy in 2-3 years. But a friend of mine in said that I can buy next summer with the TPMG loan to take advantage of the low interest rate due to Covid. The TPMG loan is 10% of total house price to a max of 200K. This has to be paid back in the future. I think I can finish off my Canadian loan in 9-10 months. If I decide to buy a house in summer 2021, I might not have saved enough money to add to the extra downpayment. I also want to buy a Tesla eventually as this will save me tons of gas. But it looks more reasonable to rent for 2 years to have some cash on hand. It is even better if I rent for 3-4 years. The question is when is the best time for me to buy a house?

Thank you
Jonathan

[CalMD]

Welcome to TPMG!

To comment on your questions:

1. You can open a traditional IRA and Roth IRA in Fidelity, and contribute after tax money to the traditional IRA, then move the money to Roth IRA. Additionally, you could consider 401k after tax contribution first. For 2020, depending on your tax situation, a total of $57000 of your after or pre-tax tax contribution and TPMG's pre-tax contribution.

I chose to have the back door Roth at another institution to keep things simple, because previously I had to move the TPMG after tax contribution to Roth IRA. But nowadays since there is a daily after tax 401k sweep, you could move the contribution to 401k instead, therefore you could do the back door Roth at Fidelity.

2. The market can be unpredictable as to when to buy a house; there is no crystal ball. Rent is about 2% down in San Francisco compared to last year, but there is currently a bidding war for suburban houses due to low interest rate and remote work. It would be beneficial to avoid the mortgage insurance and possibly wait it out until you save more for down payment, as sellers are taking cash or no contingency offers preferentially. You could possibly get more from California municipal bonds rather than mortgage interest; ie, I was quoted ~2% on the mortgage this week.

Your questions about after tax Roth IRA can also be answered by the financial planner at Fidelity, which we have access to for free. Utilize this service. You should be assigned a person, who is a fiduciary. After 20 years with Permanente Medicine, looking back, even with the sky rocketing appreciation of real estate prices in the Bay Area, stocks actually returned more. For financial independence, it is earlier to live well below the means for a few years, and everything becomes easy a few years later.

[burritos]

Any kaiser docs signing up for the low deductible + HSA plan?

[fatlittlepig]

Any kaiser docs signing up for the low deductible + HSA plan?

why would you do that

[burritos]

why would you do that

Tax deduction. Tax deferral. Tax free on medical expenditures down the line. Ever since the babies popped out over a decade ago we hardly ever use medical insurance.

[fatlittlepig]

Tax deduction. Tax deferral. Tax free on medical expenditures down the line. Ever since the babies popped out over a decade ago we hardly ever use medical insurance.

do you work for kaiser/tpmg? tpmg docs and family have platinum coverage as in you get run over by a truck and spend 2 months in icu and you get no bills other than a 5 dollar drug co pay. why would you need a health savings account in this situation