Anyone out there drawing a monthly stipend from their Teamster/UPS 401K?

[DriveInDriveOut]

Very few gave heard of it. That's why I don't have a Roth 401k. I do have a Roth IRA

Wdfd

 

[IVE GOTTA PACKAGE 4U]

Wdfd

Silence

 

[Jones]

Can't fix stupid:

Later the same day, Kelly visited another client — comfortable in the upper middle class — who wanted to take out $20,000 from her 401(k) to splurge on a vacation. She was even willing to pay a 10 percent penalty, which is required under the law if an individual is not yet 59½ years old.
Kelly couldn’t dissuade her. “People are cautiously optimistic,” he said.

Hold tight or splurge? Booming retirement accounts are making that a tough question.

 

[oldupsman]

Allow me to explain using the $3000 example. If I take the 3k a month she will automatically receive 50% of that if I die. If I chose the 75% option my pension would be reduced by 4% to $2880 and she would get 75% of that if I die. If I choose the 100% option my pension is reduced by 7% to $2790 and if I die she would continue to get that amount. There is also a pop up feature on the last 2 options. If she should die first my pension would pop back up to the original $3000.

Thanks for the explanation. That's a much better option plan than I had.

 

[IVE GOTTA PACKAGE 4U]

Can't fix stupid:

Later the same day, Kelly visited another client — comfortable in the upper middle class — who wanted to take out $20,000 from her 401(k) to splurge on a vacation. She was even willing to pay a 10 percent penalty, which is required under the law if an individual is not yet 59½ years old.
Kelly couldn’t dissuade her. “People are cautiously optimistic,” he said.

Hold tight or splurge? Booming retirement accounts are making that a tough question.

https://www.betterment.com/resources/retirement/401ks-and-iras/true-cost-of-early-401k-withdrawal/

 

[Jones]

Thanks for the explanation. That's a much better option plan than I had.

Our reductions are quite a bit stiffer. Leaving 50% means a 10% reduction, 75% is 15%, and 100% is 20%.

 

[olroadbeech]

There are no RMD's on the Roth 401k or. Roth IRA because the money has already been taxed. You will have RMDs on regular IRA's and a regular 401k.

Pros:The fees in the 401k are lower than Vanguard (and were lowered again earlier this year) and the index funds are excellent.

A 401k is safe from lawsuits (and maybe bankruptcy) but an IRA is not.

Can withdraw without penalty if you quit at 55.

Cons:Only index funds (which isn't a con for me but others seem to think it is).

Thank you for this.

 

[olroadbeech]

we have been wondering about this too. good topic. last 2 plus years we have been comfortable living on the pension while the 401k has been growing great guns.

so we thought.......why not start taking some out? all that moulah would ruin our kids. would probably cause more problems than help.

buy a brand new car? never have done that before. travel? done that. just don't know what we could do. we have everything we need or want.thinking charities like St. Judes , Shriners , SPCA and Scouts.

 

[IESucks]

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.

Wow. You are correct! Me and you are the only ones who know the right answers. Lol

 

[tarbar66]

It has been 10 years for me. My pension and a check from an investment account has got us to Social Security quite nicely. We have not touched my 401K and my IRA.

With my pension and Social Security we will only take money out of 401K and IRA for special gifts under $10,000 for grandchildren.

 

[Brownslave688]

we have been wondering about this too. good topic. last 2 plus years we have been comfortable living on the pension while the 401k has been growing great guns.

so we thought.......why not start taking some out? all that moulah would ruin our kids. would probably cause more problems than help.

buy a brand new car? never have done that before. travel? done that. just don't know what we could do. we have everything we need or want.thinking charities like St. Judes , Shriners , SPCA and Scouts.

That sad that you don't feel you have raised your kids better than to think the money will ruin them.

 

[brownmonster]

When I started this thread I still had money in my 401k to start drawing a stipend. Might be gone before I get the chance. Yikes.

 

[clean hairy]

Allow me to explain using the $3000 example. If I take the 3k a month she will automatically receive 50% of that if I die. If I chose the 75% option my pension would be reduced by 4% to $2880 and she would get 75% of that if I die. If I choose the 100% option my pension is reduced by 7% to $2790 and if I die she would continue to get that amount. There is also a pop up feature on the last 2 options. If she should die first my pension would pop back up to the original $3000.

Trying to learn here.
Isn't there an option where you can collect full pension, and when you die she gets none?
I thought you could take less than full amount, and upon death she would get a % of the pension.
If she remarries, the pension stops?
Again, trying to learn a bit here.

 

[burrheadd]

Trying to learn here.
Isn't there an option where you can collect full pension, and when you die she gets none?
I thought you could take less than full amount, and upon death she would get a % of the pension.
If she remarries, the pension stops?
Again, trying to learn a bit here.

Yes, if you take the full amount after you die she gets none

Yes, if you take a smaller amount upon your death she still get’s some

No, her getting remarried changed nothing

This is in Central States

 

[brownmonster]

Trying to learn here.
Isn't there an option where you can collect full pension, and when you die she gets none?
I thought you could take less than full amount, and upon death she would get a % of the pension.
If she remarries, the pension stops?
Again, trying to learn a bit here.

My explanation says if I take the full amount she gets half when I die automatically. There is no option for her to get zero. If she remarries, turns lesbo, becomes a gypsy, joins the circus after I croak, who cares?

 

[spankyup]

Still looking for someone actually drawing a monthly check for the intended purpose of retirement income.

retired 2011 ...59 1/2...2012.....began a 1% dispersal...have increased it every year since...The Prudential site is very good....UPS pays the fees....

 

[olroadbeech]

retired 2011 ...59 1/2...2012.....began a 1% dispersal...have increased it every year since...The Prudential site is very good....UPS pays the fees....

have you started social security? we retired in 2015 and haven't touched the 401k yet. pension covers everything and then some. starting SS this summer.

 

[UpstateNYUPSer(Ret)]

have you started social security? we retired in 2015 and haven't touched the 401k yet. pension covers everything and then some. starting SS this summer.

If your pension "covers everything and then some" why wouldn't you hold off on starting SS? You gain 8% for every year that you delay.

 

[Coldworld]

It has been 10 years for me. My pension and a check from an investment account has got us to Social Security quite nicely. We have not touched my 401K and my IRA.

With my pension and Social Security we will only take money out of 401K and IRA for special gifts under $10,000 for grandchildren.

So under 10,000 the gifts aren’t taxed at all???

 

[Coldworld]

have you started social security? we retired in 2015 and haven't touched the 401k yet. pension covers everything and then some. starting SS this summer.

Did you take as early??? What’s the monthly difference between taking it early and waiting til 70 1/2????