I think with ours, you can buy the service without the specific job years, but they are about twice as expensive. At least that is what the calculator indicated--if I bought "qualified years" where I worked for the government, which is what my years are, it was about 11000, and if I bought unqualified, it was about 20000. I think.
But confused about whether you buy specific years, like 1981 and 1982 plus others in the 2000's.
In Nevada it would be cheaper to buy years you actually worked back from the 80’s. They also let employees buy up to 5 years despite not earning them at the expensive price. Some people do that if they have 25 and don’t want to work the last 5 years to reach 30 years where you can retire at any age without penalties.
I had the opportunity when my system moved from 2%@62 to 2.7%@55. I had enough in my 457 plan to do it but I didn’t. My reasoning was, I was a single parent at the time and based on my retirement investments, I would clearly be fine with expected results. Also retirement accounts can pass to heirs but pensions not to the same extent.
This was not a good financial move as I had two considerable promotions and was making a lot more income when I retired. I was remarried at retirement three years ago. We have more than enough from my pension to live well and when I am required to pull money from 457 and IRA at age 72 I will get slammed with tax.
Like another mentioned, if you can buy service credit early in your career, it likely makes sense, nut your mileage may vary
That is interesting. I think I will call next week and try to ask some questions now that I have a better understanding of what to ask. Thank you!
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote