John Deere Pension Lump Sum Calculator
Calculate the IRS 417(e) minimum lump sum for your Deere U.S. salaried and hourly pension plans benefit and check any offer you've received against it.
Deere's defined benefit plans cover U.S. employees and some employees abroad. The U.S. salaried qualified pension plan is closed to new participants. Deere reported $252 million of pension service cost in fiscal 2025, so plans are still accruing for some employees, and some of its U.S. plans are cash balance plans.
Enter your monthly benefit from your John Deere pension statement. Use the default segment rates or the rates listed in your plan's election packet.
John Deere Pension: What You Need to Know
Plan status: Still accruing for some employees
Deere's defined benefit plans cover U.S. employees and some employees abroad. The U.S. salaried qualified pension plan is closed to new participants. Deere reported $252 million of pension service cost in fiscal 2025, so plans are still accruing for some employees, and some of its U.S. plans are cash balance plans.
Buyouts and annuity transfers
Deere's fiscal 2025 10-K doesn't report a U.S. lump sum window or U.S. insurer transfer. The insurer transfer it reports, in fiscal 2023, was its Canadian pension plan.
Understanding your lump sum offer
A plan doesn't have to offer a lump sum. If it does, IRC 417(e) sets the least it can pay: the present value of your annuity using the IRS segment rates and mortality table. A cash balance plan usually quotes your account balance instead.
Comparing an offer to the 417(e) number tells you whether the plan is paying at least the legal minimum. It doesn't tell you whether the lump sum is a good deal for you. That depends on your health, your other income, your spouse, and what you'd do with the money. If an offer comes in well below this calculator, ask the plan which month of rates and which start age it used.
The November 2025 segment rates are 4.07% for payments under 5 years away, 5.15% for 5 to 20 years, and 6.01% beyond 20. Many calendar-year plans use them for 2026. Your election packet lists the rates your plan actually used.
Tax considerations
The lump sum is taxable in the year you receive it unless you roll it directly to a traditional IRA or your new employer's 401(k). A direct rollover (plan to IRA) is not a taxable event. Taking the cash is. If you take cash, the plan is required to withhold 20% for federal taxes, and you'll owe the remaining taxes when you file.
A $400,000 lump sum taken as cash has $80,000 withheld, but the whole $400,000 is ordinary income that year. The withholding may not cover the bill. A direct rollover defers the tax until you take money out.
When the lump sum makes sense
For John Deere retirees specifically, the lump sum can make sense when: you have serious health concerns and don't expect to reach the break-even age, you have other guaranteed income sources (Social Security, spouse's pension) that cover your baseline expenses, or you're comfortable managing a large portfolio for the rest of your life.
The annuity is typically the right answer for people who don't have other guaranteed income, whose spouse is younger and may outlive them significantly, or who simply don't want to manage a large portfolio in retirement. The guaranteed payment doesn't fluctuate with markets. It shows up every month regardless of what the S&P did.
Sources
Disclaimer: This calculator is for educational purposes only. Benefit amounts, plan terms, and applicable rates vary by individual and may have changed. Verify your specific benefit details with your John Deere plan administrator or HR contact before making any election.
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Frequently asked questions
Does John Deere offer a pension lump sum?
Deere's fiscal 2025 10-K doesn't report a U.S. lump sum window or U.S. insurer transfer. The insurer transfer it reports, in fiscal 2023, was its Canadian pension plan.
How do I find my pension benefit amount?
Contact John Deere's benefits service center or log in to your benefits portal. Your annual pension statement shows your current accrued benefit amount. For terminated-vested participants (people who left before retiring), your benefit is the accrued amount at your separation date, not your final salary.
What happens to my pension if I die before collecting?
If you are married, federal law (ERISA) requires the default form of payment to be a joint and survivor annuity paying your spouse at least 50% after you die, unless you waive it with your spouse's written consent, witnessed by a notary or a plan representative. If you die before your benefit start date and you are vested, your spouse is typically entitled to a pre-retirement survivor annuity. Specifics depend on your plan documents.
Can I take a partial lump sum and keep some as an annuity?
Some plans offer a partial lump sum option that lets participants take a portion as a lump sum and convert the remainder to an annuity. Whether John Deere's plan offers this depends on your specific plan documents. Ask your benefits administrator before assuming the choice is all-or-nothing.