I've submitted my paperwork last week and received a response that they will let me know if they need anything else. How is the flow for others?
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No, I left mine. I didn't need the extra cash and I didn't want to have to pay taxes on it.
If you were left standing, do you have to take your Pension? Can you just leave it there?
So if the Sept rate is higher, it is too late to file for Dec. But one could file for Jan.
Correction to previous post-December is average of July/August/September segment rates, see below. It is correct that each of these three months are the lowest rates thus the average is the the lowest rate for calculating lump. October 2020 rates have not been published yet, should be next week.
To note on Calculator Tool, the result is only accurate for months in which rates have been published. Meaning, if today you ran the Calculator and used the December 1 date, you would have the actual amount. By the same token, if you ran the calculator today and used a January 1, 2021 date, the result would not be your actual amount because the tool will only use the last month published rate (September 2020) to calculate not an average of three months because
January 1 date uses the average of August/September/October and as previous stated October rates have not been published.
So if you are thinking of a January 1 date, best to wait until after next week when October rates are released to run numbers and get a more accurate lump amount.,
Determining the Three Months to Use:
The applicable interest rate is always the average of the rates for the fifth, fourth and third months preceding your Annuity Starting Date as follows:
Three Months Used for the Average Applies to Benefits That Start On
August, September, October January 1
September, October, November February 1
October, November, December March 1
November, December, January April 1
December, January, February May 1
January, February, March June 1
February, March, April July 1
March, April, May August 1
April, May, June September 1
May, June, July October 1
June, July, August November 1
July, August, September December 1
Generally, the IRS announces the interest rates for a particular month in the following month.
Jan and Feb 21 were lower as rates trickeling up, but also depends on your last date of service. December is average of Oct/Sept/August rates, and those three are lowest rates, thus higher payout. But in each case, by all means run the data on the estimator. My situation was $200k more in December than September...
Why the rush? Won't it be better to receive the lump sum in 2021?
I did my maths, perhaps your formula is different???
Yes, I received similar response a few days after submitting my paperwork.
I will receive lump sum in December.
that was normal for me. I've submitted paperwork 3 times this year as numbers kept changing in my favor and you can change paperwork up to 30 days or so. In one case I did also call asked and if anything was issue or confirm, and they said no and everything fine. They usually email you back if problems. I changed my lump sum from September, to November, and finally December. Hope all works out for you