DROP Exit Strategy

Decision Flow

See the tax implications of each way to deploy your DROP lump sum, side by side — this tool does not recommend a strategy.

Using default estimatesSet up your profile

Step 1

Your situation

These values are from your PensionForge profile. Adjust if your situation has changed.

DROP lump sum

Amount projected to be distributed at DROP exit.

Age at DROP exit

Tax filing status

Annual pension income

Estimated annual Social Security

Counted from your claiming age onward.

Social Security claiming age

Other taxable income

Any other taxable income in retirement.

Assumed annual growth rate

Applied to invested balances. Editable.

Separating as a qualified public-safety officerRelevant to §72(t)(10): certain distributions taken directly from the governmental plan at age 50 (or with 25 years of service) are exempt from the 10% additional tax.

Step 2Choose strategies

Step 3Results

New to handling a DROP lump sum? Read how DROP works.