Old Man Jingles
Rat out of a cage
Usually to escape taxes in retirement.
Regular IRA/401K conversion to a Roth IRA is a decent financial decision.
Right age is 40 or below.
Pension buyout
- Thread starter Shecoope
- Start date
Regular IRA/401K conversion to a Roth IRA is a decent financial decision.
Right age is 40 or below.
UpstateNYUPSer(Ret)
Well-Known Member
Roth conversions are usually done bit by bit-----it would be foolish to do it on a lump sum payment.
Old Man Jingles
Rat out of a cage
Since it affects marginal tax rate for each filing period, that is a valid point.
You a Dodger fan?
Sorry to be annoying but if your worked your butt off for UPS for over a decade don’t you think you should get what u deserve
542thruNthru
Well-Known Member
And you will! You filled out the paper work right? So you'll get your money! Now shut up about it!
Yes I will I filled it out long before the due date
UpstateNYUPSer(Ret)
Well-Known Member
If not for the change in the pension laws you would still be waiting until you turn 65 to "get what you deserve".
Well that would be a good 34 years from now
UpstateNYUPSer(Ret)
Well-Known Member
Not surprisingly you completely missed my point.
Darn skippy I’m just hoping it will come before Christmas one rep said the first or second week in December then yesterday they said the end of December
UpstateNYUPSer(Ret)
Well-Known Member
Why the urgent need for the money?
Pay off traffic tickets and to pay off my car
UpstateNYUPSer(Ret)
Well-Known Member
Pay off traffic tickets-------ask a family member for a short term loan which you could repay with your tax refund.
Pay off my car------depending upon the APR of your car note this may or may not be a smart move. If the APR is 10% or less and you are losing 10% of the lump sum as an early withdrawal penalty and 20% or so when you file your taxes next year, it would not be a smart move.
That's not what that money is intended for.
What was it intended for
My family is not gonna let me get they much money
Retirement.
UpstateNYUPSer(Ret)
Well-Known Member
Oh, I don't know------YOUR RETIREMENT!!!!!!!
UpstateNYUPSer(Ret)
Well-Known Member
Kid, if it sounds as though I am being unduly harsh with you, that's because I am. While you may be 34 years away from being 65, the time to prepare for retirement is now.
Based on what you are planning on using the money for, I am going to assume that your lump sum payment is between $15-20K. Taking the lump sum payment will take care of your immediate needs; however, if you took that same $15-20K, put it in to a Traditional IRA and left it there for 34 years, based on an annual return of 8%, you would have turned that $20K in to $200K.
In case you change your mind, you have 60 days after you receive the distribution to roll it over and avoid the 10% penalty and 20% income tax.
Based on what you are planning on using the money for, I am going to assume that your lump sum payment is between $15-20K. Taking the lump sum payment will take care of your immediate needs; however, if you took that same $15-20K, put it in to a Traditional IRA and left it there for 34 years, based on an annual return of 8%, you would have turned that $20K in to $200K.
In case you change your mind, you have 60 days after you receive the distribution to roll it over and avoid the 10% penalty and 20% income tax.
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El Correcto
god is dead
Anything could happen in that 34 years. Take the money and go vacation. Yolo
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