With a change in employment, we are reviewing our options with a 457(b). It is through a hospital system, so it appears to be non-governmental, and likely unable to be rolled over.
From the plan information:
Can I make withdrawals?
Within 30 days from your separation of employment, you must choose to receive your payment:
In a single lump sum payable 30 days after your date of termination
In a single lump sum deferred to a future date, but no later than the date you reach 70½ years of age
As monthly or annual payments of a chosen amount for a period not to exceed fifteen (15) years and continuing until the Account is exhausted. The payment start date can be deferred to a later date but no later than the date you reach 70½ years of age.
My question is whether there is a rhyme or reason to which option to select? We're talking approximately $45,000 that would be paid as additional income. Compensation this year will be less, as it will be 10 months of income vs 12. However, a signing bonus and paid relocation (possibly taxable with new tax plan) would bump total compensation to the equivalent of 12 months income. Production kicks in at two years. I'm also a little uneasy about the assets being accessible to creditors if the old hospital system were to face financial challenges.
From the plan information:
Can I make withdrawals?
Within 30 days from your separation of employment, you must choose to receive your payment:
In a single lump sum payable 30 days after your date of termination
In a single lump sum deferred to a future date, but no later than the date you reach 70½ years of age
As monthly or annual payments of a chosen amount for a period not to exceed fifteen (15) years and continuing until the Account is exhausted. The payment start date can be deferred to a later date but no later than the date you reach 70½ years of age.
My question is whether there is a rhyme or reason to which option to select? We're talking approximately $45,000 that would be paid as additional income. Compensation this year will be less, as it will be 10 months of income vs 12. However, a signing bonus and paid relocation (possibly taxable with new tax plan) would bump total compensation to the equivalent of 12 months income. Production kicks in at two years. I'm also a little uneasy about the assets being accessible to creditors if the old hospital system were to face financial challenges.
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