brownmonster
Man of Great Wisdom
Plan to start taking withdrawals in the near future and wondering how it works. Or how well it works.
Anyone out there drawing a monthly stipend from their Teamster/UPS 401K?
- Thread starter brownmonster
- Start date
You aren't going to move the money to somewhere else?
brownmonster
Man of Great Wisdom
From what I understand you can take it out of the 401K before age 59 1/2 if you are retired. If I move it to an IRA the rules are different.
You may want to check about the state taxes. I was reading up on it and at least in my state they can tax you on your 401k if you are under 59 1/2. This is a big decision. Hope you take the time and maybe spend a few bucks and talk to a financial advisor.
rod
Retired 22 years
brownmonster
Man of Great Wisdom
Talked to one recently. Putting together some info. Need to get the hell out!
Trust me my brother, I completely understand. This is a life decision, make sure you have all of your ducks lined up before you walk out the door.
brownmonster
Man of Great Wisdom
WI typically mirrors the Feds on these rules. If not the WI penalty is 3.3%. If I draw 2 grand a month that would be $66. That ain't stopping me.
brownmonster
Man of Great Wisdom
How far are you from 59.5?
brownmonster
Man of Great Wisdom
Would be 2 years away if the plan holds.
Maybe work a few months longer and quit putting money in your 401k and keep it in cash?. I honestly just hate to see someone drawing that money out so early.
I said my peace. Best of luck to you my brother. Hope you can get the
outta here.
brownmonster
Man of Great Wisdom
I'll take that under advisement.Maybe work a few months longer and quit putting money in your 401k and keep it in cash?. I honestly just hate to see someone drawing that money out so early.
I said my peace. Best of luck to you my brother. Hope you can get the
Ms.PacMan
Well-Known Member
From the Summary Plan Description for the 401K
In certain circumstances, the 10% federal excise tax on distributions may not apply. You should consult with your tax advisor to determine if the 10% federal excise tax will apply to your distribution. For example, the 10% federal excise tax does not apply to payments made to you after you separate from service with UPS after the year you reach age 55.
401K's are taxed as ordinary income afaik.
In certain circumstances, the 10% federal excise tax on distributions may not apply. You should consult with your tax advisor to determine if the 10% federal excise tax will apply to your distribution. For example, the 10% federal excise tax does not apply to payments made to you after you separate from service with UPS after the year you reach age 55.
401K's are taxed as ordinary income afaik.
brownmonster
Man of Great Wisdom
Still looking for someone actually drawing a monthly check for the intended purpose of retirement income.
Been looking at pulling some cash from 401k, (although I'm retired and older than 59.5)looks like it can all be done online thru prudential website. Been told it usually takes a week to 10 days to get the money deposited in bank, you may have to call the 800 number the first time you pull money out to verify some things.
Brownslave688
You want a toe? I can get you a toe.
Good luck and enjoy retirement.
Seems most upsers just live off the pension and use 401k as fun money or emergency fund money.
I know that can't always be done but probably why you're having trouble finding someone.
Seems most upsers just live off the pension and use 401k as fun money or emergency fund money.
I know that can't always be done but probably why you're having trouble finding someone.
PT Car Washer
Well-Known Member
Moved the money from 401k into my IRA and set it up to provide monthly income. $1400/mo and still provides growth. Not yet retired but at least I know where I will stand financially when I do decide to pull the plug.
What is the advantage of moving the money to an IRA vs leaving leaving it in the 401k?
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