Prudential Retirement

Discussion in 'UPS Retirement Topics' started by 0RW0, Apr 14, 2016.

  1. 0RW0

    0RW0 New Member

    I'm new here, although I've read a few posts that searches have brought me to. I received a card in the mail the other day stating that I am now eligible for the teamster 401k. I asked a friend who has worked at UPS for a few years about it. He told me he doesn't use it because there is no matching and that I could just change my contributions at the upsers site once I have a year under my belt and UPS matches. He said he uses etrade to manage his 401k. I signed up, but haven't made any contributions yet. Is this something I should go ahead and do? Is this UPS's 401k or something supplemental? Figured I'd ask here, because getting answers at work is like pulling teeth.
     
  2. upschuck

    upschuck Avatar bet gone wrong

    It is the UPS/IBT 401(k) plan that doesn't have a lot of options, but has very low fees associated with it.
     
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  3. 0RW0

    0RW0 New Member

    So is this the only 401k option or does UPS offer one separate from the IBT. Sorry for the ignorance, I'm not very well versed in job benefits. I haven't had the opportunity to have many jobs that offer it.
     
  4. silenze

    silenze Lunch is the best part of the day

    Its the only one you can manage . After working 5 years you are vested in the ups pension plan. That money you cant touch until you retire
     
  5. 0RW0

    0RW0 New Member

    Thanks for the info guys.
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

  7. 0RW0

    0RW0 New Member

    I've had everything set up, I'm just trying to decide what to start up. From what I've read, if you're not being matched the Roth is the way to go, but I'm confused with the "Option Week" and "Roth Option Week". What are these and their differences?
     
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You have the option of having your Option Week paycheck deposited directly in to your 401k or Roth. Most likely you do not have Option Weeks where you work so this most likely would not apply.
     
  9. 0RW0

    0RW0 New Member

    Thanks for the info. Looks like I'm starting the Roth.
     
  10. By The Book

    By The Book Well-Known Member

    It's the teamster /UPS plan. You have it deducted weekly from your check and prudential administers it. There is no matching so if your waiting for that to happen don't hold your breath. Think of it like a forced savings plan. It's absolutely worth it, if you want to have money for your retirement after age 59 1/2. Put in what your comfortable with and forget about it until you want to put more into it.
     
  11. UPSGUY12

    UPSGUY12 New Member

    I've been putting 10% of my pre-tax pay into it since 1996 & I'm glad I did now that I'm close to retirement. You can get a loan from it before age 59-1/2 for education, medical, or foreclosure only. However, remember, this should be a last resort option as you will pay 10% penalty to the government & interest on the loan which you will pay back w/after tax dollars. So, yes, invest in it-but only as much as you feel comfortable not being able to use til you're 59 1/2. Hope this helps
     
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    There is no penalty imposed when you borrow from your 401k. Loan payments are made with pretax money.
     
  13. But their is a loan fee. Maybe $100?
     
  14. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    $75.
     
  15. It's still money!
    I just can't believe how few guys that have bad credit and little personal savings.
     
  16. 1989

    1989 Well-Known Member

    If I were to start over I would have only contributed to an IRA, and not touched the 401K.
     
  17. brownmonster

    brownmonster Man of Great Wisdom

    The payroll deduction makes it so easy. It's like a tax that I actually get to keep.
     
  18. Many drivers would never save a nickel, if they had to do it on their own.
    Yes their are better options than the 401k but most people aren't disciplined enough to save.
     
  19. brownmonster

    brownmonster Man of Great Wisdom

    The limit is only $6500 in an IRA for 50 and older.
     
  20. I meant better investment options.
    I can't believe how many don't save anything at all.