Home/FDNY

Financial Planning for
FDNY Firefighters & EMS

The FDNY pension is one of the most valuable benefits in New York City. Most members retire not knowing how much they're leaving on the table — in VSF timing, 457(b) withdrawals, and loan decisions.

The FDNY Financial Picture

Your Pension Is Powerful.
But It Has Rules Nobody Explains.

Tier 2 vs. Tier 3 pension structures determine your multiplier, your DROP account eligibility, and when it makes sense to retire. The VSF — the Variable Supplement Fund — pays you a bonus in retirement, but the timing of your retirement date affects what you collect and when.

Your NYC 457(b) deferred comp has a unique advantage most advisors miss: you can withdraw it penalty-free before age 59½ when you separate from service. Roll it into an IRA and that window closes permanently. We check this before recommending anything.

If you have any student loans — EMS personnel with nursing degrees, firefighters who went back to school — PSLF may forgive your remaining balance after 10 years of service. One wrong move (like refinancing to a private lender) eliminates that eligibility forever.

FDNY Planning Areas

  • Tier 2 vs. Tier 3 pension — retirement date optimization
  • VSF timing — how your retirement date affects supplement payments
  • NYC 457(b) rollover decision — keep penalty-free access or roll to IRA
  • DROP account strategy — invest vs. hold vs. annuitize
  • PSLF for EMS nurses and firefighters with student loans

Free Tools

FDNY Retirement
Calculators

Three of the questions FDNY members ask us most: should I roll my 457(b), what does my monthly retirement paycheck look like, and how much can I move to Roth in the low-income years before Social Security and RMDs. Run your own numbers below.

Hypothetical illustrations for education only. Not a prediction, recommendation, or guarantee. Your actual result will differ.

Your Situation
$
$
Total dollars you'd likely withdraw between separating and age 59½. Capped at your balance.
Your Situation
$
Annual, before taxes. Use the number on your Fire Pension Fund estimate. This tool does not compute the tier formula.
VSF is generally a fixed $12,000/yr for members who retire for service with 20+ years on a QPP service pension. Not for disability or vested-deferred retirees. Eligibility and amount are set by the fund. Only include it if your fund confirms you qualify. (Before age 62 the VSF is reduced by a COLA offset; this tool shows the full amount.)
$
$
NY does not tax your FDNY pension or VSF. 457(b) withdrawals are NY-taxable beyond a $20,000 exclusion if you are 59½+. Other states vary.
Your Situation
$
Your federal taxable income (after the standard deduction). Your pension is the usual main piece. NYC/FDNY pension is not taxed by NY, but it is taxable on your federal return, so it counts here.
$
Your traditional 457(b) and/or traditional IRA dollars. Roth balances do not belong here.
73 under current law for most. 75 if born 1960 or later.
What the Numbers Say
What's actually at stake
0 yrs
of penalty-free access before 59½.
Educational estimate, not advice.
Max 10% penalty an IRA would charge on early withdrawals (one-time)—
457(b) value in horizon —
IRA value in horizon —
Fee difference over horizon (future $, whole balance)—
A common middle path

—

Things to weigh

—

Talk it through, free 15-min call
Your Estimated Paycheck
Estimated pre-Social-Security monthly income
$0
—
Educational estimate, not advice.
FDNY pension (annual, gross)—
VSF (annual)—
457(b) withdrawal (annual)—
Federal tax (rough est.)—
NY state tax (rough est.)—
Pre-SS net (monthly)—
Once SS starts: net (monthly)—
Things to weigh

—

Map your full plan, free 15-min call
Your Conversion Window
Hypothetical total you could move to Roth before RMDs
$0
—
Educational estimate, not advice. Not a recommendation to convert.
Window length (low-income years before RMDs)—
Room in your target bracket this year—
Annual conversion headroom (lowest of the ceilings)—
What's holding the headroom—
Rough federal tax on one full-headroom year—
Things to weigh

—

Size it with an advisor, free 15-min call
🔒 Results Locked

Unlock all three calculators

Enter your email and your full results unlock right here on this page, for all three tools. No spam — your results appear on-screen, with the occasional plain-English note by email.

Sirmium Capital LLC is a registered investment adviser. Educational purposes only. Not personalized financial advice. This tool does not create an advisory relationship.

Important: These calculators are hypothetical illustrations for education only. They are not investment, tax, or legal advice, not a recommendation, and not a guarantee. Your actual result will differ. Figures use general 2026 federal and NYC figures, current as of June 2026 (IRS Rev. Proc. 2025-32; NYCERS Fact Sheet #707; CMS), and do not reflect credits, other income, NIIT, AMT, capital-gains stacking, your state return, market ups and downs, or your full balance sheet. They are not tax advice or tax preparation. RMD age, IRMAA thresholds, VSF eligibility, and the NYC COLA can change and depend on your situation. If you later become a client and roll over assets, Sirmium may earn advisory fees on those assets; weigh that when reading the 457(b) tool. Registration does not imply a certain level of skill or training. Confirm specifics with the NYC Fire Pension Fund, the NYC Deferred Compensation Plan, and a qualified tax professional before acting.

That's the picture in broad strokes. Want it run on your exact numbers?

Book a Free 15-Min Call

Free Resource

Get Your Free FDNY Retirement Checklist

The step-by-step checklist for your 457b rollover, pension income strategy, and Roth conversion window — built for FDNY retirees.

Sirmium Capital LLC is a registered investment adviser. Educational purposes only. Not personalized financial advice.

What's Inside:

  • Tier 2 vs. Tier 3 — the retirement multiplier difference
  • VSF payment schedule and when to time your retirement
  • Why rolling your 457(b) early can cost you penalty-free access
  • PSLF eligibility for EMS and fire service members

FAQs

Common FDNY Financial Questions

Not necessarily immediately. The NYC 457(b) has a significant advantage: you can withdraw funds penalty-free before age 59½ upon separation from service. Roll it into an IRA and you generally lose that penalty-free window. We evaluate your early retirement income needs before recommending any rollover decision.
The VSF provides scheduled supplemental payments for eligible FDNY retirees — sometimes called the "Christmas bonus." The timing of your retirement date relative to VSF eligibility can affect your first year of payments significantly. We model this into your cash flow plan so you're not surprised in year one of retirement.
No. We are a fee-only Registered Investment Adviser. We never sell proprietary products, insurance policies, or annuities for commissions. We sit on your side of the table — objective advice for a transparent advisory fee.

Ready to Begin?

15 Minutes. No Pitch.
Just Honest Answers.

Book a free 15-minute call. We'll walk through your pension tier, 457(b) situation, and answer whatever you're thinking about.

Bring these and 15 minutes is plenty

Your 457(b)/NYCDCP balance and the fund it's in  ·  your pension tier and monthly estimate (and VSF eligibility)  ·  other accounts — IRA, Roth, brokerage, yours and your spouse's  ·  the monthly income you'll want in retirement. Ballpark is fine — come anyway and we'll point you to exactly what to pull.

Book a Free 15-Min Call