Personal Finance (Not Investing) • Mortgage Recast/Payoff/Invest

I very much appreciate the explanation; this has been a great learning experience.

The $300,000 equalization payment is tax free money.

No state or local income taxes.

I will have 4 more paychecks this year (this is the way my contract works). I absolutely want to keep focused on retirement, so maxing out to the amount my paychecks will let me for the last four months in 2024 and then revising for 2025 is great.

I have a bonus coming my way that will move me to the 24% bracket. It is a one-time substantial check and only my pension plus taxes et cetera are taken out (technically, can be). And I want it to hit in 2024 as it will have a positive impact on my 3 highest years for my overall pension calculation. Someone asked about cola; cola will happen when a I hit 65 if I remain in the state.

So:
Change my w-4 to reduce federal withholdings (to allow as much money as possible to go toward my pre-tax retirement plans for the rest of 2024).

Max out the 403b in the next 4 paychecks—hit the $30,500.00 allowance, as I will be 50 within 2024.

Max out as much as I can the 457b in the next 4 paychecks—as much as those checks will allow.

Figure out the math for 2025; talk to CPA/fiduciary or see if Empower (employer’s retirement provider) can provide some info if I can’t go through this index and find some great calculators.

Statistics: Posted by Admiral — Mon Jul 22, 2024 10:23 am — Replies 13 — Views 1488