Pacific Coast Benefits Trust in mail, can I cash out?

[By The Book]

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correct me if i am wrong but they will with- hold 20% for taxes when you cash out and you have to report this as a distribution just like any other retirement plan on your taxes.

yes and no....there is a spot to elect to have them take the taxes out or not. It is recommended that they take the 20% out so your covered. I don't know if there's a 2 in box 7 of the 1099rform or not. If there is then it would be treated as income and you would be liable for the federal and state tax rates at the time of the distribution.

 

[olroadbeech]

i've got a big chunk of change in this account but haven't done anything about it since i retired.

i guess i'll wait until i am in a lower tax bracket , this year will be first full year retired .

 

[twoweeled]

I talked to them yesterday. It's a 3 month process where you call and request an application 3 months prior to your retirement date, or termination date. They then mail you the application in the mail which you have hen fill out how you want your money., you can roll it over into a qualified plan, take a lump sum, or after age 62 receive equal payments that will end prior to 15 years. You don't have to wait until you retire to request the application. The process is very much like applying for your union pension. They know your years of service/peer info and all that.

Yes, that is what the paperwork says. What they told me on the phone was different. They didn't even want the application, for 3 months. I'm still waiting for them to send it to me. It's been close to 6 weeks. I found the applications on their website. You'll have to fill out about 3 apps. One app for retirement benefit. another application for how you want it distributed. Then a 3rd one which is the spousal consent form, which has to be notarized. Don't wait for them to send it to you. all applications related to this are on their site NWADMIN.COM I think.

 

[By The Book]

Yes, that is what the paperwork says. What they told me on the phone was different. They didn't even want the application, for 3 months. I'm still waiting for them to send it to me. It's been close to 6 weeks. I found the applications on their website. You'll have to fill out about 3 apps. One app for retirement benefit. another application for how you want it distributed. Then a 3rd one which is the spousal consent form, which has to be notarized. Don't wait for them to send it to you. all applications related to this are on their site NWADMIN.COM I think.

I guess I'll wait about a week to receive the application. The person I spoke with seemed well informed on the process. Said it was going in the mail...I'll let you know if it doesn't.

 

[Coldworld]

From what I see. You can only get this money once you've separated from the company. It becomes obvious they do not want to give this money up. There are such requirements like; you can't apply for the money till 2-3 months after retirement. Then allow 1 month, after 2 months of waiting for payment! LOL Sounds like 3 months for them to send it, but they word it 1 month, after 2 months. Sounds like, best case scenario, 6 months after retirement. fired or quitting is probably the same. I also noticed on my statement, it looks like I'm losing money in this plan:
Earnings Credited -$149.00 maintenance -$7.28

You people who have another 15 years to go, might end up getting a bill, for money you OWE to pacific joke benefits trust.

You lost money last quarter because the market tanked ... You should be making a little at a time on there and when you retire should have enough in there to take the family on a cruise...

 

[Coldworld]

i've got a big chunk of change in this account but haven't done anything about it since i retired.

i guess i'll wait until i am in a lower tax bracket , this year will be first full year retired .

You need to check into that.... Just cash it out

 

[twoweeled]

You lost money last quarter because the market tanked ... You should be making a little at a time on there and when you retire should have enough in there to take the family on a cruise...

A small family, around a very small lake maybe. It really hasn't done much. It's nothing like the old thrift plan was. IMO.

 

[Coldworld]

A small family, around a very small lake maybe. It really hasn't done much. It's nothing like the old thrift plan was. IMO.

True but I hope to have 15k in it by the time i retire

 

[olroadbeech]

True but I hope to have 15k in it by the time i retire

another benefit of being a union member.

 

[twoweeled]

another benefit of being a union member.

33 years and I'm around $9700. I can't do the compounding math, but maybe in 40-45 years? Who knows? There aren't anymore contributions being made, if I understand correctly. either way -
good luck!

 

[By The Book]

A small family, around a very small lake maybe. It really hasn't done much. It's nothing like the old thrift plan was. IMO.

Two different animals. The thrift plan received money's from the employee and the company.

 

[By The Book]

True but I hope to have 15k in it by the time i retire

Not gonna happen.

 

[104Feeder]

Mine's around $8k. What's to bitch about? It was 10 cents an hour going into this extra benefit which later was pushed to the pension where it will pay us even more in the years to come. This is just a nice lump sum or rollover you get several months after you leave the company for any reason. I appreciate it for what it was.

 

[MC4YOU2]

I've been out a year in April. Mine lost just short of $180 and maintenance was about $8. I'm letting it ($11K) ride for now, as there's a 10% penalty + taxes for withdrawing prior to being 59 1/2 years old. If the market tanks every year I'll take it out, but if history is any guide I'll break even next year. I could lose $200 a year and break even in 4 years rather than paying the penalty.

 

[twoweeled]

Two different animals. The thrift plan received money's from the employee and the company.

It did receive money from both, that's true. But I was addressing the earnings. The gains on this Pacific Coast are nothing remotely close to the thrift plan. We had years of close to 20%. Do you recall gains anywhere near that with Pacific Coast?

 

[By The Book]

It did receive money from both, that's true. But I was addressing the earnings. The gains on this Pacific Coast are nothing remotely close to the thrift plan. We had years of close to 20%. Do you recall gains anywhere near that with Pacific Coast?

The thrift plan did rock.....as it relates to earnings on investment.

 

[By The Book]

I've been out a year in April. Mine lost just short of $180 and maintenance was about $8. I'm letting it ($11K) ride for now, as there's a 10% penalty + taxes for withdrawing prior to being 59 1/2 years old. If the market tanks every year I'll take it out, but if history is any guide I'll break even next year. I could lose $200 a year and break even in 4 years rather than paying the penalty.

Did you roll yours over into your 401k? The reason I ask is you mention the 10% penalty for withdrawal before age 59 1/2.

 

[MC4YOU2]

Did you roll yours over into your 401k? The reason I ask is you mention the 10% penalty for withdrawal before age 59 1/2.

No, I'm just leaving it separate. I'll be able to take it out without the extra penalty in March of 2020. It will seem like a nice little bonus by then. In the meantime I'll get reports twice a year to monitor it's progress.

 

[twoweeled]

No, I'm just leaving it separate. I'll be able to take it out without the extra penalty in March of 2020. It will seem like a nice little bonus by then. In the meantime I'll get reports twice a year to monitor it's progress.

I wasn't aware of the penalty before age 59 1/2. Unless you roll it over into an IRA (even after
59 1/2), You'll still encounter the 20% withholding. I thought it was post tax, but apparently I thought wrong!

 

[MC4YOU2]

I could be wrong, but I thought I'd read the tax would be 15% unless you took it out early, then adding in the 10% penalty makes it 25%.