UPS Special Pension Buyout Offer - December 2016
- Thread starter JMR07168
- Start date
I want another beer.
1989
Well-Known Member
Jenny doesn't have any info.
But she has Biggins
1989
Well-Known Member
I think bill and trump are calling right now.
Hubcap93
New Member
OK, so, the way I see it, it's not a bad situation for me. 6 years and A few months P/T and they will pay out 11k. If I wait until 65 I will have to live (and receive) almost 5 years to get the 11k they would pay me now. I'll take my chances and roll it over into the IRA (Roth preferably). I know, It'll be taxed. But, I'll still earn more in interest than what I will lose in taxes. No Brainer. Now, just to find out what fund to roll it into. Any have a suggestion?
UpstateNYUPSer(Ret)
Well-Known Member
If you roll it directly in to an IRA it will not be taxed.
What funds are you referring to?
brown_deal
New Member
Here is a helpful article for anyone thinking about taking the lump some over.
Should you accept a lump-sum pension cashout?
Anyone considering taking the offer need to concerned a few thing.
1. Are you going to roll it into a 401K or IRA, or take the money and pay additional taxes.
2. What is your current health. Are medical bills piling up then the buy could be a good option.
3. Do you need this money for your retirement. If your saving for retirement elsewhere then this may not be necessary or could be a back up.
My brother-inlaw worked for UPS for 10 years before he quit and he received the lump sum paper work. He was offered around 15K lump sum or $550 per/month at retirement. Crunching the numbers if he lives another 25 years on retirement at $550 per/month that's $165,000. If he takes the lump sum and invest it in a 401K and gets 7% interest a year for 33 years(he was 32 at the time and planed to retire at 65) it will be worth $139,880 at age 65.
One way he has some money up front at 65 that he can take and do whatever he wants with. The other option is he gets steady payments for the rest of his life. There is no easy answer you just need to look at the risk and decide what is best for you.
Should you accept a lump-sum pension cashout?
Anyone considering taking the offer need to concerned a few thing.
1. Are you going to roll it into a 401K or IRA, or take the money and pay additional taxes.
2. What is your current health. Are medical bills piling up then the buy could be a good option.
3. Do you need this money for your retirement. If your saving for retirement elsewhere then this may not be necessary or could be a back up.
My brother-inlaw worked for UPS for 10 years before he quit and he received the lump sum paper work. He was offered around 15K lump sum or $550 per/month at retirement. Crunching the numbers if he lives another 25 years on retirement at $550 per/month that's $165,000. If he takes the lump sum and invest it in a 401K and gets 7% interest a year for 33 years(he was 32 at the time and planed to retire at 65) it will be worth $139,880 at age 65.
One way he has some money up front at 65 that he can take and do whatever he wants with. The other option is he gets steady payments for the rest of his life. There is no easy answer you just need to look at the risk and decide what is best for you.
Hubcap93
New Member
Yeah, but, that's if he lives 25 years "in " retirement right? That would be 90 years old. That's not highly likely for most people.
Hubcap93
New Member
We'll, I guess I should have said what IRA to roll it into. If I put it into roth IRA, it will be taxed up front though, right?
UpstateNYUPSer(Ret)
Well-Known Member
I don't believe so but am not 100% positive.
fishscale99
Active Member
Does anyone think the payout will come early?
I received my package last week and in doing some research I found that in order to not take the penalty for being less than 59 1/2 for the lump sum you have to roll it into an traditional IRA not a Roth IRA. You don't pay taxes on the money until you withdraw it from the IRA. If you choose to keep the money or place it into a Roth, you pay taxes plus a 10% penalty for early withdrawl.
UpstateNYUPSer(Ret)
Well-Known Member
Thanks for the info.
Nah, they said December so I'm pretty sure it'll be in December
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