tag:blogger.com,1999:blog-20674128.post4430731200812482962..comments2024-03-14T13:50:26.981-04:00Comments on Chaz's School Daze: Maximum TDA Limit Raised To $19,000 For 2019.Chazhttp://www.blogger.com/profile/09964739497720364749noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-20674128.post-59368690396486406602020-05-02T19:22:45.095-04:002020-05-02T19:22:45.095-04:00Chaz, I'm retiring this year (2020) at the end...Chaz, I'm retiring this year (2020) at the end of the school year and changed my contribution rate to reflect this but I wont hit the maximum allowed contribution to the TDA unless the four summer paychecks we receive for the work done the prior summer (i) are included in the TDA contribution and (ii) are included at the new rate I elected for this year. Any idea on (i) and (ii)?Jennnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-51418275131423398172019-01-12T07:32:25.228-05:002019-01-12T07:32:25.228-05:00Chaz in the article could you discuss the situatio...Chaz in the article could you discuss the situational difference if you are living in another states like Florida compared to NY how the exit strategy works? Also let’s say you accumulate tremendous amount of money more than you might need in retirement and you are getting Pension, TDA, Def Comp 457 Roth, personal Roth/IRA,etc which do you take first if you intended to pass on money to children to lessen their tax burden so they can get a head start? Thanks! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-1309748603287810742019-01-12T07:23:30.744-05:002019-01-12T07:23:30.744-05:003:57 - Thank you I really appreciate it!
Just to...3:57 - Thank you I really appreciate it! <br /><br />Just to clarify, So as educators we get Pension based on years of service and 3 consecutive highest earning years, TDA with minimum @ 7% fixed, Def Comp 457 Roth and 401k Roth that we can contribute both 20K a year plus we can get outside Roth account @ $6K a year? Just received Def Comp paper work and it talk about being able to also create retirement account for spouse as another saving vehicle, is this all possible? <br />Thank you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-63907358781991799482018-12-30T15:57:45.878-05:002018-12-30T15:57:45.878-05:006:40 - if you select roth, it will be tax free sin...6:40 - if you select roth, it will be tax free since you're paying the taxes now. The comments above are about a traditional 457. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-56700204242793008632018-12-17T06:40:43.578-05:002018-12-17T06:40:43.578-05:00I am confused as I just opened a 457 with the City...I am confused as I just opened a 457 with the City Def Comp. I thought the 457 was a super ROTH vehicle that the City offered so if you opted for the 457 Roth as opposed to contributing pretax dollars which is an option, that all money taken during retirement would be completely tax free without limitation no matter the amount like a Vanguard Roth account? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-60177941714886284462018-11-25T21:10:03.565-05:002018-11-25T21:10:03.565-05:00This is awesome! So in any given year, I can withd...This is awesome! So in any given year, I can withdraw $20k from the 457, any amount from the TDA, and get my pension state and city tax free. The only problem is it'll increase my federal tax rate. What if I withdraw from my traditional IRA at Vanguard? Will that also be tax free?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-57097816548482269532018-11-14T07:48:41.392-05:002018-11-14T07:48:41.392-05:0010:59
If you take the interest, the principal sta...10:59<br /><br />If you take the interest, the principal stays the same.<br /><br />12:37<br /><br />The TDA and the 457b are not the same. The TDA is considered a pension while the 457b is a savings vehicle.Chazhttps://www.blogger.com/profile/09964739497720364749noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-48231889763922040742018-11-13T12:37:48.723-05:002018-11-13T12:37:48.723-05:00So we can take both $20,000 from the tda AND
$20,...So we can take both $20,000 from the tda AND<br /><br />$20,000 from the 457b a year and only owe federal tax? essentially taking out<br /><br />$40,000 combined and pay not state tax?<br /><br />This is because the tda and 457b are considered pensions? Is this correct?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-51683318473830213912018-11-12T22:59:23.312-05:002018-11-12T22:59:23.312-05:00So you clear 28k for the year to use ? Then your p...So you clear 28k for the year to use ? Then your principal from your TDA no longer grows if you take out the interest ? <br />Chaz can you explain this please anonymoushttps://www.blogger.com/profile/05775853914041179852noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-78803411076025131522018-11-12T14:34:40.010-05:002018-11-12T14:34:40.010-05:00Kenny
Assuming you live in New York State and you...Kenny<br /><br />Assuming you live in New York State and you pay 20% federal tax. Here is my calculation.<br /><br />500,000 x 0.07 = $35,000 x 0.20 = a tax of $7,000Chazhttps://www.blogger.com/profile/09964739497720364749noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-22709020414642051892018-11-12T07:23:45.094-05:002018-11-12T07:23:45.094-05:00So using the 500K as a number and 7 % interest how...So using the 500K as a number and 7 % interest how much taxes would a person have to pay each year if they just wanted to have a check each month on the interestkennyhttps://www.blogger.com/profile/07136287420203982338noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-23034331226466399552018-11-11T11:29:59.960-05:002018-11-11T11:29:59.960-05:00There is no negative side. The TDA is considered ...There is no negative side. The TDA is considered a pension and exempt from State and City taxes.Chazhttps://www.blogger.com/profile/09964739497720364749noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-59045579051786104982018-11-11T10:11:55.617-05:002018-11-11T10:11:55.617-05:00chaz- what is the negative side of doing that? If...chaz- what is the negative side of doing that? If i have 500K when im done is it as easy getting a check each month for 3 grand? How much of that would I lose to taxes? 20%?kennyhttps://www.blogger.com/profile/07136287420203982338noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-10306703880361757572018-11-11T09:09:00.650-05:002018-11-11T09:09:00.650-05:00Kenny:
I intend to do just that.Kenny:<br /><br />I intend to do just that.Chazhttps://www.blogger.com/profile/09964739497720364749noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-78576314060418601122018-11-11T09:00:43.778-05:002018-11-11T09:00:43.778-05:00why dont more people just take out the interest at...why dont more people just take out the interest at retirement and have another check each month in addition to the pension?kennyhttps://www.blogger.com/profile/07136287420203982338noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-18781773378009408672018-11-09T10:01:49.913-05:002018-11-09T10:01:49.913-05:00 $30,000
TRS will hold 20% for federal tax. No ci... $30,000<br />TRS will hold 20% for federal tax. No city and state taxes.<br />In the 457 you redraw 30,000 you pay federal tax on 30,000<br />and 10,000 city and state taxes.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-48274949520830815642018-11-08T10:01:13.858-05:002018-11-08T10:01:13.858-05:007:27
You only pay federal tax.
TRS would hold 20% ...7:27<br />You only pay federal tax.<br />TRS would hold 20% for State Tax. When you file your<br />taxes you may get some money back or pay extra federal tax.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-39844241296862926572018-11-08T07:27:53.498-05:002018-11-08T07:27:53.498-05:00 If you have $500,000 in your TDA when you retire ... If you have $500,000 in your TDA when you retire you can basically get $3000 a month which is your interest at 7%. Not a bad extra check to get each month but you do have to pay taxes on that. I don’t really agree with the guy that lives in a small house in a bad neighborhood and never goes on vacation. You can still live a great life with a lot of perks and still contribute to the TDAkennyhttps://www.blogger.com/profile/07136287420203982338noreply@blogger.comtag:blogger.com,1999:blog-20674128.post-14929435442527644692018-11-08T05:55:37.851-05:002018-11-08T05:55:37.851-05:00To 11:50
Always check with your accountant .
TDA...To 11:50<br /> Always check with your accountant .<br /> TDA no city or state tax when withdrawn.<br /> 457 the first 20,000 are tax free city and state ,<br />After that then you pay city and state tax.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-64229276005464117842018-11-07T10:00:54.346-05:002018-11-07T10:00:54.346-05:00Just as you work hard on putting money into TDA, 4...Just as you work hard on putting money into TDA, 457, and<br />any other retirement accounts, You must have an exit strategy.<br />Or you will give it back in taxes.<br />I would like CHAZ to do a story on how to take your money out of these <br />retirement accounts and give different scenarios. Thank you CHAZ in advance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-40111159611779217022018-11-06T23:50:16.527-05:002018-11-06T23:50:16.527-05:00So $40,000 a year from both the 457 and 403b? Wha...So $40,000 a year from both the 457 and 403b? What happens when we start collecting our pension, social security, and IRA? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-73383092406553993862018-11-06T23:47:17.562-05:002018-11-06T23:47:17.562-05:00I do the same as you. Max out everything including...I do the same as you. Max out everything including my IRA with Vanguard and trying to FIRE. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-59577614716578625162018-11-06T20:13:08.459-05:002018-11-06T20:13:08.459-05:001:28 AM (& 9:03 PM): Can you explain the math ...1:28 AM (& 9:03 PM): Can you explain the math behind $3000/month? Are you projecting out until your earliest penalty-free withdrawal? You have that now or you WILL have that? At 7%, $3000/month would require an accumulation of over $500k, which would take over 15 years to achieve. Maybe you HAVE been putting it away for that long, in which case you deserve a major pat on the back. And how does every new $19k add another $300/month? At earliest withdrawal date? At RMD date? Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-2207178140418587052018-11-06T18:41:22.943-05:002018-11-06T18:41:22.943-05:00@9:30 PM
why cant you have both a maxed out TDA, a...@9:30 PM<br />why cant you have both a maxed out TDA, as well as european vacations?<br />life is meant to be lived.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20674128.post-61105747119765303862018-11-06T09:15:21.523-05:002018-11-06T09:15:21.523-05:00 4:25 PM. yes you can provided you take no other... 4:25 PM. yes you can provided you take no other withdrawals from IRA, annuity or other tax advantaged source that would put you over the 20000 limit. Prehistoric pedagoguehttps://www.blogger.com/profile/05309260131781133687noreply@blogger.com