70 Hour Approval

[Over70irregs]

We hv seen 9.5 language change at drop of hat. Need more organizing so as to be less dependent on Browns $.

 

[Brownee]

They're not running out of money. It is that they are spending it all via e-commerce.

 

[IVE GOTTA PACKAGE 4U]

Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.

I've had less stops during Christmas.

 

[KOG72]

I've had less stops during Christmas.

Same here plus I had a helper

 

[Johney]

Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.

Stimulus check plus tax refund. And CoVID 19 is the end of the world so people are dying to max out their credit cards.

401K's. They are letting you take money with no penalty other than taxes and I hear they are letting you spread that out over 3 years. Insane as that sounds I know of two guys who have taken money and paid mortgages and assorted thing off.

 

[over9five]

I heard they are invoking the special pandemic 24/7 rule.

Article 78 Paragraph 3 in your contract book if you need to verify.

 

[UpstateNYUPSer(Ret)]

401K's. They are letting you take money with no penalty other than taxes and I hear they are letting you spread that out over 3 years.

Yes. They are waiving the 10% early withdrawal penalty (under 59 1/2) and the 20% mandatory withholding. Yes. You are allowed to spread the tax hit on the early distribution over the next 3 tax years. Yes. You can withdraw a total of $100K.


The one caveat is that the withdrawal must be Covid related and you must have documented proof that either you or a close family member had been adversely affected during the crisis.

This should be done ONLY as a last resort. $100K taken out now could potentially cause upward of a $300-500K loss over time.

 

[Johney]

Article 78 Paragraph 3 in your contract book if you need to verify.

Crazy, they are offering us time off left and right due to having so many extra people and not laying off.

 

[Johney]

Yes. They are waiving the 10% early withdrawal penalty (under 59 1/2) and the 20% mandatory withholding. Yes. You are allowed to spread the tax hit on the early distribution over the next 3 tax years. Yes. You can withdraw a total of $100K.


The one caveat is that the withdrawal must be Covid related and you must have documented proof that either you or a close family member had been adversely affected during the crisis.

This should be done ONLY as a last resort. $100K taken out now could potentially cause upward of a $300-500K loss over time.

They are not asking for documented proof(so I hear)they merely ask you if you or anyone in your family has had economic loss due to Covid or have you taken money from any other retirement fund. My one buddy said his sister has and they gave him $20,000.

 

[UpstateNYUPSer(Ret)]

They are not asking for documented proof(so I hear)they merely ask you if you or anyone in your family has had economic loss due to Covid or have you taken money from any other retirement fund. My one buddy said his sister has and they gave him $20,000.

The article I read mentioned documented proof but I am sure that each fund is handling this differently. Whether you need proof or not is irrelevant-----this should most certainly be done as a last resort. If you are going to do this you may as well take enough (if you can) to pay off all of your bills and then max our your 401k from that point forward.

 

[Johney]

While I'm entirely not sure I want to touch my 401K, can it really be a bad idea to use it to pay off loans or let it slip away in the next economic hit? Can't lose what you don't have.

 

[Johney]

If you are going to do this you may as well take enough (if you can) to pay off all of your bills and then max our your 401k from that point forward.

Oddly enough that's what I thought exactly about doing.

 

[UpstateNYUPSer(Ret)]

While I'm entirely not sure I want to touch my 401K, can it really be a bad idea to use it to pay off loans or let it slip away in the next economic hit? Can't lose what you don't have.

That's an excellent point and having the ability to spread the hit over the next 3 years does make it enticing.

 

[Johney]

That's an excellent point and having the ability to spread the hit over the next 3 years does make it enticing.

I have a call into my accountant as we speak.

 

[UpstateNYUPSer(Ret)]

Oddly enough that's what I thought exactly about doing.

Add up the interest that you would have paid on the outstanding debt and compare that to the tax hit on $33K each year for the next 3 years. Factor in the additional contributions that you will make if you do decide to max out your 401k after the withdrawal, subtract that from your projected gross and the $33K to see if you would come out ahead by doing this.

You may want to ask your fund if this is even a possibility as they may have put a moratorium on future contributions for a specific period of time in return for letting you withdraw "their" money. I don't know if this is the case or not but it wouldn't surprise me if they were to add this restriction.

 

[UpstateNYUPSer(Ret)]

I have a call into my accountant as we speak.

Let us know (without specifics) what he/she has to say.

 

[Johney]

You may want to ask your fund if this is even a possibility as they may have put a moratorium on future contributions for a specific period of time in return for letting you withdraw "their" money. I don't know if this is the case or not but it wouldn't surprise me if they were to add this restriction.

From what I've been told they are not. You can return any amount you choose that you borrowed yet still max out your contributions for the year. So I'm told.

 

[UpstateNYUPSer(Ret)]

From what I've been told they are not. You can return any amount you choose that you borrowed yet still max out your contributions for the year. So I'm told.

If you choose to return any part of the distribution make sure that the 1099-R that you receive in January/February 2021 reflects that or the IRS will assume that you kept the entire distribution. Also, you only have 60 days to change your mind on any or part of the distribution----anything beyond that will not be recognized and you will be taxed on the full amount.

Box 7 of the 1099-R will normally show Code 1 for Early Distribution if you take funds out before you turn 59 1/2. I don't know if they will be allowed to change the code to 7 for Normal Distribution.

 

[Johney]

If you choose to return any part of the distribution make sure that the 1099-R that you receive in January/February 2021 reflects that or the IRS will assume that you kept the entire distribution. Also, you only have 60 days to change your mind on any or part of the distribution----anything beyond that will not be recognized and you will be taxed on the full amount.

Box 7 of the 1099-R will normally show Code 1 for Early Distribution if you take funds out before you turn 59 1/2. I don't know if they will be allowed to change the code to 7 for Normal Distribution.

I will let my co-workers know.

 

[Brown287]

Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.

Seeing as the federal unemployment kick ($600) isn’t taxable, when combined with the state unemployment is the equivalent to a full time wage of $32. Quite a few people are making more on unemployment then they normally do.

Then you add that to the ones who’ve been making their normal wage, (tech employees, government employees), you now see what’s going on.

Friend of mine has a daughter making over 4 times as much on unemployment then her part-time retail job normally pays her.

But yeah us UPSers are so brave.