How to get out of Teamsters 401k

Discussion in 'UPS Discussions' started by LiB, Jun 6, 2012.

  1. LiB

    LiB New Member

    Still have 20 years to go but thinking about retirement. I still have my Teamsters 401k and since I'm not contributing to it anymore I was wondering how I can take the money out and either use it on pole dancing single moms and white powder or throw it in the UPS Savings Plan (since the wife wouldn't like the first one i'll probably end up doing the second one). Anyone have any experience in this?
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You have four withdrawal options and what you want to use the money for is not one of those.

    Seriously, unless you are in the process of being evicted, have serious medical debts, are buying a new house or are paying for college, you are out of luck.

    Withdrawals carry a 10% penalty and 20% Federal tax withholding.

    Withdrawls should be a last resort.
  3. JonFrum

    JonFrum Member

    Sounds like the Original Poster is looking to rollover his money into the UPS Savings Plan, not withdraw it. The Summary Plan Description (SPD) explains the Rollover process.
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am not familiar with that plan so I did some research. It is available to UPS employees in certain subsidiaries (not package) and is composed entirely of UPS stock A. Rollovers are allowed from the 401k to the Savings Plan. Distributions from the plan are subject to immediate taxation (withheld prior to disbursement). The Plan offers an employer match of up to a 3% contribution rate.

    I guess this would be a way to get around the withdrawal process but you would still lose money by doing so.
  5. JonFrum

    JonFrum Member

    How would you loose money doing a Rollover?
  6. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    OP please go see a professional financial advisor ASAP u don't have a clue what your doing.
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You would not lose money doing the rollover---you would lose money when you start taking distributions from the plan.
  8. LiB

    LiB New Member

    You're right, i could just leave it in there and let it sort it self out and in 20 years i could have 150,000 from it just sitting there(depending on the market). Or i could see if i can add what money is in there to my UPS 401k and have much, much more (depending on the market). But your clue.

    The original question was answered in the third post i believe. Thanks.
  9. UPS1907

    UPS1907 Member

    You can't roll it over if you are still employed by UPS. It just has to sit there unless you want to take a penalty
  10. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Not true.
  11. Anonymous 10

    Anonymous 10 Guest

    I would hold on to it where it is. The divorce rate is very high being in management. I would cash iit out and stash the cash. When you get divorced you can go back to your your white powder and pole dancing habits or if you are like a true partner you will never stop. Good luck
  12. UPS1907

    UPS1907 Member

    Not true.[/QUOTE]

    I would like to know the answer. I spoke with Merrill Lynch and they told me so. As long you are currently employed by UPS, you can't move it penalty free. The certain exceptions of foreclosure and such still remain of course.
  13. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    ...which would be nice but Merrill Lynch has nothing to do with our 401k---Prudential does.

    Go to and read the Summary Plan Description.
  14. UPS1907

    UPS1907 Member

    I stand corrected. ML runs UPS. I did speak with prudential.
  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Go to the 401k website. Click on the 401k banner. Look on the left side of the page for the word Withdrawals. Click on it. On this pager look to the right for Rules for Withdrawals. Scroll down to the very bottom of the page and you will see this:

    Roll overs are allowed to an IRA, a Roth IRA or another qualified plan.
  16. Big Babooba

    Big Babooba Well-Known Member

    There are exceptions to paying the 10% penalty if you make a withdrawal before age 59 1/2 .

    • Distributions upon the death or disability of the plan participant.
    • You were age 55 or over and you retired or left your job.
    • You received the distribution as part of "substantially equal payments" over your lifetime.
    • You paid for medical expenses exceeding 7.5% of your adjusted gross income.
    • The distributions were required by a divorce decree or separation agreement ("qualified domestic relations court order")
    However you are not exempt frm the 20% Federal withholding.
  17. UPS1907

    UPS1907 Member

    Upon LEAVING UPS. Not while still employed by UPS.
  18. Funfact

    Funfact Well-Known Member

    IF that was true and you rolled into a roth IRA wouldn't you have to pay 20% fed tax and what ever state tax rate first. As you invest in a roth IRA after taxes not before...
  19. Ops is MY Game!

    Ops is MY Game! New Member

    Do you still work for UPS, if so, you cannot touch the 401K, but if you are no longer an employee, you can roll the Teamsters 401k into a private IRA, 401k or Roth 401k.