I am a married with no children 40 y/o career firefighter in NJ. I am eligible for a 65k yearly pension with medical (co-share approx 10k) at 49.
Recently NJ passed a law which could allow me to retire at 44 on a 50k yearly pension but with no medical cover.
If i choose this route our primary income would be the 50k pension, 457b withdrawls (currently 110k), savings (currently 35k), & proceeds from sale of our primary house (estimated 70k-120k). Aside from the 68k mortgage we are debt free- cars paid off & no Credit Card debt.
We would sell the house 2 years prior to retirement & make our paidoff condo our primary residence redirecting mortgage payments to maxout 457b & increase savings. Our condo taxes,hoa,utilities cost $800/ month.
The sticking point is the no medical option. Can i afford our out of pocket medical coverage for 21 years (me) & 25 years (wife) until medicare? The plan is to live off the 50k pension & savings along with here & there side hustle work and only use the 457b funds to cover medical insurance costs. If i can afford medical with pension & savings i will continue to grow 457b.
If i use 457b soley for medical insurance costs can i avert paying taxes (NJ/Federal) on the withdraw? 457 is not subject to 10% penalty.
Sorry for the long story to get to the question but wanted to give a clear picture.
