Q & A: Maximizing Your Pension

Q & A: Maximizing Your Pension

Q: My pension plan offers several payout options, which one should I take?
A: It depends. You have to take into consideration the options made available to you in light of your circumstances such as your marital status, your retirement goals and other retirement income sources you may have.

Q: My pension plan offers a Joint and Survivor Annuity or Single Life Annuity option, what’s the difference?
A: As the name suggests, a Joint and Survivor Annuity is intended to continue to provide a payout to a surviving spouse. Single Life Annuities have a higher monthly payout but payments cease when the owner dies. It’s important to discuss details with your personal retirement distribution professional or other advisor to make sure you fully understand the payout options that are available to you.

Q: My pension plan offers a Joint and Survivor Annuity option, is that going to be the best choice since I am married?
A: It could be the best option but it may not necessarily be the best. Depending on your situation, even though you are married you may be able to maximize your pension by electing a Single Life Annuity option and using some of your funds to incorporate life insurance into your retirement income strategy. However, it is very important to discuss these matters with your personal qualified advisors to help make appropriate choices for your individual situation.

More Updates

IMPORTANT TRUST DEADLINE APPROACHING

For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

Read More »

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »
Scroll to Top