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Brown Cafe UPS Forum
UPS Retirement Topics
Need advice from future retirees or retired.
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<blockquote data-quote="Babagounj" data-source="post: 5409888" data-attributes="member: 12952"><p>401K are long term investments.</p><p> All funds put in are deducted from your check, so the temptation to spend is removed.</p><p>Thus your yearly income is reduced.</p><p>Taxes aren't due until the funds are removed. ( after age 59.5 ) { anything before that age and you get extra penalties }</p><p></p><p>Funds maybe taken out of 401K ( after 59.5 ) and converted in Roths minus taxes paid.</p><p>Best to do this before Medicare kicks in.</p><p>Since yearly incomes set the prices for what extra you'll have to pay for Parts B & D.</p><p></p><p>Roths are after taxing funds.</p><p>But they will not be taxed again later in life.</p><p></p><p>The Teamster/UPS 401K does not include a company match, but the fees are really low.</p><p></p><p>Fees are what you compare when choosing which funds to invest in and that also goes for which Roth you choose.</p><p></p><p>For now invest in both 401K plans and see which one you like best.</p><p>And always use electronic transfers when moving funds, never use a check.</p><p>Any funds by check show up as income, which one is trying to avoid.</p><p></p><p> Withdrawals from my Teamster/UPS 401K ( after 59.5 ) are broken down like this ...$$$$$ minus $10 ( fee) times .746 equal what cash I get.</p><p>The $$$$$ is considered income, not the amount I received.</p></blockquote><p></p>
[QUOTE="Babagounj, post: 5409888, member: 12952"] 401K are long term investments. All funds put in are deducted from your check, so the temptation to spend is removed. Thus your yearly income is reduced. Taxes aren't due until the funds are removed. ( after age 59.5 ) { anything before that age and you get extra penalties } Funds maybe taken out of 401K ( after 59.5 ) and converted in Roths minus taxes paid. Best to do this before Medicare kicks in. Since yearly incomes set the prices for what extra you'll have to pay for Parts B & D. Roths are after taxing funds. But they will not be taxed again later in life. The Teamster/UPS 401K does not include a company match, but the fees are really low. Fees are what you compare when choosing which funds to invest in and that also goes for which Roth you choose. For now invest in both 401K plans and see which one you like best. And always use electronic transfers when moving funds, never use a check. Any funds by check show up as income, which one is trying to avoid. Withdrawals from my Teamster/UPS 401K ( after 59.5 ) are broken down like this ...$$$$$ minus $10 ( fee) times .746 equal what cash I get. The $$$$$ is considered income, not the amount I received. [/QUOTE]
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