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This is not sufficient information to help you figure that. I need to know your filing status, and what you claim for withholdling?
It is never simple is it?
You seem to know what you will be getting. I will only be able to give you an estimate based on some assumptions that may or may not be correct.
You want me to estimate your take home pay or tell you how you can figure it, when I have no idea what or how you will start taking distributions from your deferred compensation plan.
We are not set up in this site to be able to figure or plan your retirement income, but I can help a bit.
Everything depends on the source of income.
If your income were earned income, I can tell you what that should look like. Using the following payroll calculator: http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp
But you say you are already clearing 1500 every two weeks with your deductions on the 65,000.
but when you retire, does the 65,000 go away?
Based on the 65,000 if it is earned income your take home pay should look more like this based on what you gave me.
-weekly Gross Pay
However when you retire this may change:
If your monthly take home pay is twice the bi-weekly, then you would currently have about 3500 a month take home.
The normal formula says you will need at least 80 percent of your current income in order to retire.
So if you may 3500 now, you can figure you will at least require 2800 a month.
Minus SS = 1300 that has to be made up by your deferred comp plan.
If you are age 63, at retirement, figure a 20 year life expectancy.
Assume a 2.5% growth factor per year on your deferred comp (2.5%) of remaining balance.
so you would need to take out 120K by 20 years = 6,000 a ear or 500 a month.that is about an 800 a month short fall.
add to this your state benefit of 3500.
I am actually 65 now and will be eligible for SS in April of this year. My 65k will end when I retire (whenever I decide on that date).
Below is a breakdown of my pay and deductions right now:
We have 26 pay periods each year. This is for one pay period:
Fed. Tx 352
AZ state tax 130
Medical PPO Pretax 24
AZ state retirement 235
Short term disab. 29
AZ state retiremen LT 13
Supplemntal Life 8
Retro Supp. Life 7
Pre tax deductions 258
Tax deductions 679
Other deductions 57
Net pay $1,586
This amount will be gone once I retire. What I am trying to see if my State retirement of $3500 will be taxed up front or do I have to pay taxes at the end of the year. If they do tax it, what will be the net pay amount? That plus my SS will determine if I can afford to retire with that plus what little amount I can get from my deferred comp plan.
Does this help in your projections?
Thanks again for your help.
Thanks for the clarification. It was hard for me to understand exactly what you were getting at. I wished we could talk by phone sometimes.
OK so one more question. What is the source of your state retirment? is it public service or teaching? what are you retiring from?
I work for the Yuma County Health Department, so it is the State Retirement System.
Let me know if that answers your question.
Thanks for the additional information.
I apologize that I ws not able to get to you reply sooner.
I do not know where in all of this I got the idea you were relocating to AZ, and had a retirement form out of state. BUT
As resident of AZ drawing an AZ state retirment benefit, the first 2,500 dollars of your AZ benefit is tax exempt. So, you only pay taxes on the balance.
AZ will take out back up withholding of 25% unless you sign a document authorizing or requesting another amount.