Discussion in 'FedEx Discussions' started by fedupforsure, Jul 15, 2015.

  1. fedupforsure

    fedupforsure Member

    I retired and called to rollover my 401k and Vanguard told me that FedEx requires them to hold my 401k monies for 45 days. I do not understand how this is even legal. The good thing was, and would advise all retires to do, is roll over your 401k before you retire. In this way they only require to hold 20% of your monies. I fail to see the reasoning behind this. Can anyone explain this to me. And the Vanguard person said this is a FedEx requirement. My financial guy has never heard of this before.
  2. Route 66

    Route 66 Bent Member

    I'm sorry I can't explain it, but this just goes to show that FedEx continues to screw with you even after you've departed "the firm". They're like rabbits in that they just can't ever seem to stop screwing.

    But congratulations and enjoy your retirement.
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You can't rollover before you retire.

    The 45 days is in case you change your mind and is standard procedure.
  4. dezguy

    dezguy Well-Known Member

    For our RRSP here, they only allow you to take a max of 5% per month out. It's my money! I should be able to spend it the way I want!
  5. vantexan

    vantexan Well-Known Member

    When I quit in 2013 my mgr said they shouldn't take more than a few weeks to cut me a check. Obviously I should have done my due diligence, it was a problem for me. Also whether you receive the traditional pension or the portable pension you have to contact the Retirement Service Center 3 months in advance of your retire date. As far as I know whether it's Vanguard or the portable pension lump sum 20% is what they take up front.
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    They will withhold 20% if you take a distribution but there is no withholding if you do a rollover to another retirement account.
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Do you have the option of rolling it over in to another retirement account?
  8. dezguy

    dezguy Well-Known Member

    Not until I die and my wife or kids can do what they want with it.
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Is the account with FedEx or the Canadian government?
  10. dezguy

    dezguy Well-Known Member

    It is with FedEx's benefits provider, registered with the government for tax purposes.
  11. Serf

    Serf Active Member

    Just so we are straight. 20% withholding if one were to choose lump sum payments of 401k and or PPA? Assuming the person was above 59.5 yrs old, they avoid the 10% additional penalty fee.
  12. fedupforsure

    fedupforsure Member

    I am 62. I took 94k back in dec and rolled it over to a Edward jones retirement account. not taxed yet as it went from 1 ira to another ira. that was 80% of what I had in Vanguard.
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  13. Goldilocks

    Goldilocks Well-Known Member

    AND, on the 46th day while rolling 401 over. You can take a one time withdrawal without paying any penalties, although you will be taxed as income. Rules are 55 and older and you must quit the company.
  14. Goldilocks

    Goldilocks Well-Known Member

    Think I'm staying with vanguard because their fee's are cheap. Are you rolling everything in an IRA? Think I might keep FDX stock fedex gave me when I first started.
  15. Goldilocks

    Goldilocks Well-Known Member

    I'm calling retirement today.
  16. olroadbeech

    olroadbeech Happy Verified UPSer

    you wont be taxed with a direct rollover from one retirement account to another. vanguard should be able to help you with that. I think and correct me if I am wrong that they should only withhold 20 % if you are making a withdrawal or a distribution.

    a DIRECT rollover is an electronic transfer from your retirement to another IRA or retirement vehicle.

    I retired and we have our 401k with prudential and they told me I can keep my account with them and do not have to do a rollover so that is what im going to do. I will probably do partial rollovers to vanguard .( if that is possible )

    I also have my IRA with vanguard for years and think they are the best.