how to model deferred lump sum pension?
Submitted by ChrisCowles on Sun, 08/28/2016 - 00:35I have a Cash Balance Plan defined benefit pension. It's defined contribution by the employer while employed, then the balance is available to me as a defined benefit at retirement. The cash balance can be used to purchase an annuity or taken as a lump sum and rolled over to an IRA. (I also could take it as a lump sum and pay income taxes on it, if I wished.)
I currently have it modeled as a lump sum rollover by setting my last year's employer retirement match as the amount I'd normally get as my match, plus the balance of that cash balance plan.