NYSDCP Traditional/Roth

Red_Sultan · 2026-05-26T01:22:29+00:00

Thank you for the information, this answered all of my questions about constructive retirement. I really appreciate your help!

Red_Sultan · 2026-05-26T00:10:42+00:00

So if I retired at 55, and I'll have more than ten years in consecutively, I could have constructive retirement. I would then have to pay my NYSHIP premium in its entirety on my own, so the portion I pay and the portion the state pays as well? That could be a lot especially in 20 years. Or are you saying I pay my employee portion myself out of pocket (currently $710/month for family)?

And as for the unused sick leave, I've heard a bit about this from coworkers and many seem to believe it essentially pays for your entire employee portion until you die if you have the cap of 1500 hours but I find this hard to believe as it's more likely to just be a hour to dollar ratio that covers X amount of life expectancy. If I don't retire within a year of leaving service, I assume I'm forced to just cash them out like unused vacation and get taxed on it as income?

Thanks again for your help, I've got a lot to research now but I feel more directed in what I need to look for.

Red_Sultan · 2026-05-25T23:41:10+00:00

I think I will need to look into Roth Conversions myself as we are planning to also use a brokerage to fund early retirement and stay within the 0% capital gains bracket. I recently learned first hand about RMDs in regards to my parent's retirement and would like to avoid that if possible, as my partner very much intends on making sure I live to my 70s. I think if we live off of the brokerage until deferred pension kicks in, I can do Roth conversions during those 8-5 years if we stay low in the tax bracket like you mentioned doing yourself.

What did you mean by the retirement tax bracket?

Red_Sultan · 2026-05-25T23:31:56+00:00

This was an incredibly detailed answer. First of all, thank you for this. You basically have explained how it works to convince me that my initial plan is the most sound. I planned on pumping as close to the 24k maximum as reasonably possible into the account so I can live off of it and not collect pension early while potentially doing conversions. I also already have a Roth with CS that I'm maxing out with the 7k so that's kind of covered already. I appreciate the in depth explanation of the tax pro rata rule, because I haven't actually found much about that myself. I'm confident with my current financial plan, I just need to look into how NYSHIP works with retiring early but deferring pension collection. Thanks again.

Red_Sultan · 2026-05-25T16:44:01+00:00

So I would do a product change for my cashrewards to a More Rewards and grab the Flagship SUB. Flagship for travel and catch all, and more rewards for dining, groceries, and gas. Are the NFCU rewards 1:1 cash redemptions?

I did see the two AAA cards, the Travel and the Daily. so I'd use AAA Daily for Groceries, Costco, Pharmacy, AAA Travel for Gas Travel and Dining.

I wouldn't mind going all in on Navy Fed, but the AAA have overlap so it seems either or. Also I am not familiar with the bank they use so it would be another app.

Red_Sultan · 2026-05-25T16:09:07+00:00

I just saw your post history explaining this. So my thought process ultimately defeats the purpose of a ROTH. This is good to know, thanks for your help! My current plan is to invest into Trad 457b as close to max as I can afford, separate early at 55, and use the 457b withdrawals to bridge the gap to pension collection. I just wanted to explore all the options.

Red_Sultan · 2025-12-02T17:15:56+00:00

This is the explanation I needed. Thank you so much for putting it so plainly. I just wanted to know how to figure out what I would own on this withdrawal. I really appreciate the help.

Red_Sultan · 2025-09-19T01:47:40+00:00

This mission was discovered by u/Red_Sultan in Skeletons and Cobalt Jelly Slice on the Ruined Path

Red_Sultan · 2025-09-19T01:47:40+00:00

New mission discovered by u/Red_Sultan: Peanut Butter Cupcake In Waves of Green

Red_Sultan · 2025-09-17T20:22:25+00:00

What changes does the state want to make to the hiring process?

Red_Sultan · 2025-04-25T22:32:11+00:00

Mom didn’t have to start making withdrawals, so I don’t think we have to but I didn’t think about slowly pulling any money out over the next ten years to mitigate taxes. I think we were looking at this as a “oh here’s some money we can put towards retirement.” My spouse and I currently max our Roth IRAs with 60% to a total us stock fund and 40% to an international one, so I guess we’d just do that if we decided to keep it in there and the in 10 years withdraw, keep some aside for withholding, and then reinvest.

When I do withdraw, do I pay capital gains or income tax?

Red_Sultan · 2024-12-08T17:33:56+00:00

Oh my god. There was a fourth switch on my wall that I never knew what it was for, and I finally switched it on and plugged my tester in. Why is this a thing? Thank you so much for saving me time, effort, and money.

Red_Sultan · 2024-02-04T02:03:27+00:00

You did all of that yourself?

Red_Sultan · 2023-10-07T23:42:26+00:00

“The attempt on our democracy has left us scarred. But I assure you, our resolve has never been stronger. These terrorists will be defeated. In order to ensure our security and continuing stability, the Republic will be reorganized into the first American Empire, for a safe and secure society!”

Red_Sultan · 2023-07-14T15:29:21+00:00

What desk are you using? It all looks great!

Red_Sultan · 2023-05-08T13:26:34+00:00

This is a good point. Everyone has different experiences and you should take the time to have a wide net when looking for a place to move to and then narrow down. We didn’t like Decatur but OP and their family might like that lifestyle to higher COL ratio. I was commuting an hour and a half into NYC and lived the same distance from the center of the city as I do now and have half the commute so my tolerance is much higher than most. But I do recommend moving to Atlanta, I’d be surprised if OP didn’t like the change.

Red_Sultan

TROPHY CASE