Pension buyout

[Shecoope]

Are you taking the full amount in cash?

Yes I am are u

 

[sailfish]

Yes I am are u

Losing 30% of that amount in taxes is really gonna hurt.

But no. I'm rolling my whole sum into an IRA.

 

[IVE GOTTA PACKAGE 4U]

Losing 30% of that amount in taxes is really gonna hurt.

But no. I'm rolling my whole sum into an IRA.

You can split it up between 2019 and 2020

 

[sailfish]

You can split it up between 2019 and 2020

Are you referring to my election or his?

 

[Box Ox]

Losing 30% of that amount in taxes is really gonna hurt.

They withhold 20% automatically for tax purposes. Whether or not you get any of that back depends on your tax bracket and withholding from your other income. Salary during the year, etc.

The tax penalty you can count on getting hit with for a cash out is 10% of the gross amount.

 

[SmithBarney]

But do you know how long it takes for it to be direct deposited

You think that might be a question you ask prior to signing an agreement? They'll pay it out on your 62nd birthday...

 

[Shecoope]

You think that might be a question you ask prior to signing an agreement? They'll pay it out on your 62nd birthday...

They said the lump some payments would be distributed in December

 

[Gipsee]

Did you take buyout offer

I did. I left over 14 years ago after becoming vested for 5 years 2 months full-time in Supply Chain. I have a fantastic retirement plan where I am now so this wasn't even factored into my retirement.

 

[Gipsee]

I already submitted the documentation in online and It says complete just waiting on the funds to hit my account it should be soon fingers crossed

It will probably be around the middle of December.

 

[Gipsee]

Was there much difference between investing the buyout or staying in?

Staying in it doesn't grow. It just is what it is. Rolling it over into another account he controls the growth.

 

[UpstateNYUPSer(Ret)]

They withhold 20% automatically for tax purposes. Whether or not you get any of that back depends on your tax bracket and withholding from your other income. Salary during the year, etc.

The tax penalty you can count on getting hit with for a cash out is 10% of the gross amount.

I believe you have the option of whether you want the 20% withheld or not. There is no such option on the 10% penalty for early withdrawal.

The OP still has the opportunity to avoid the tax hit by rolling the funds over to an IRA within 60 days; barring that, he is in for a rude awakening when he goes to file his taxes.

 

[UpstateNYUPSer(Ret)]

You think that might be a question you ask prior to signing an agreement? They'll pay it out on your 62nd birthday...

He will receive the deposit before the end of the year as the company want to shed these pensions from their books.

 

[UpstateNYUPSer(Ret)]

You can split it up between 2019 and 2020

Nope. Nice try, thanks for playing.

 

[Shecoope]

It will probably be around the middle of December.

So you think by mid December I should receive my direct deposit???

 

[IVE GOTTA PACKAGE 4U]

Nope. Nice try, thanks for playing.

I was talking about a Roth conversion.

Please pay attention or don't comment on things that you don't know anything about.

 

[Gipsee]

So you think by mid December I should receive my direct deposit???

It depends what order they process them in....but more than likely

 

[Shecoope]

It depends what order they process them in....but more than likely

Yeah I was reading a tread from the last pension buyout in 2016 I think they go by last name and they got them December 16,2016 so I’m thinking that should be case this year

 

[Shecoope]

Does anybody know direct deposit dates for 2019 pension buyouts

 

[Gipsee]

Does anybody know direct deposit dates for 2019 pension buyouts

 

[UpstateNYUPSer(Ret)]

I was talking about a Roth conversion.

Please pay attention or don't comment on things that you don't know anything about.

Why in the world would anyone even consider doing a Roth conversion?