How to get out of Teamsters 401k

[LiB]

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?

 

[UpstateNYUPSer(Ret)]

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.

 

[JonFrum]

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.

 

[UpstateNYUPSer(Ret)]

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.

 

[JonFrum]

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.

How would you loose money doing a Rollover?

 

[Brownslave688]

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

 

[UpstateNYUPSer(Ret)]

How would you loose money doing a Rollover?

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

 

[LiB]

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

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 right...no clue.

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

 

[UPS1907]

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

 

[UpstateNYUPSer(Ret)]

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

Not true.

 

[Anonymous 10]

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?

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

 

[UPS1907]

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

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.

 

[UpstateNYUPSer(Ret)]

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.

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

Go to www.retirement.prudential.com and read the Summary Plan Description.

 

[UPS1907]

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

 

[UpstateNYUPSer(Ret)]

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.

 

[Big Babooba]

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.

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.

 

[UPS1907]

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.

Upon LEAVING UPS. Not while still employed by UPS.

 

[UPSGUY72]

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.

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...

 

[Ops is MY Game!]

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.