I'm new here, although I've read a few posts that searches have brought me to. I received a card in the mail the other day stating that I am now eligible for the teamster 401k. I asked a friend who has worked at UPS for a few years about it. He told me he doesn't use it because there is no matching and that I could just change my contributions at the upsers site once I have a year under my belt and UPS matches. He said he uses etrade to manage his 401k. I signed up, but haven't made any contributions yet. Is this something I should go ahead and do? Is this UPS's 401k or something supplemental? Figured I'd ask here, because getting answers at work is like pulling teeth.
Prudential Retirement
- Thread starter 0RW0
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UpstateNYUPSer(Ret)
Well-Known Member
UpstateNYUPSer(Ret)
Well-Known Member
You have the option of having your Option Week paycheck deposited directly in to your 401k or Roth. Most likely you do not have Option Weeks where you work so this most likely would not apply.
By The Book
Well-Known Member
It's the teamster /UPS plan. You have it deducted weekly from your check and prudential administers it. There is no matching so if your waiting for that to happen don't hold your breath. Think of it like a forced savings plan. It's absolutely worth it, if you want to have money for your retirement after age 59 1/2. Put in what your comfortable with and forget about it until you want to put more into it.
UPSGUY12
Member
I've been putting 10% of my pre-tax pay into it since 1996 & I'm glad I did now that I'm close to retirement. You can get a loan from it before age 59-1/2 for education, medical, or foreclosure only. However, remember, this should be a last resort option as you will pay 10% penalty to the government & interest on the loan which you will pay back w/after tax dollars. So, yes, invest in it-but only as much as you feel comfortable not being able to use til you're 59 1/2. Hope this helps
UpstateNYUPSer(Ret)
Well-Known Member
There is no penalty imposed when you borrow from your 401k. Loan payments are made with pretax money.
But their is a loan fee. Maybe $100?
UpstateNYUPSer(Ret)
Well-Known Member
It's still money!
I just can't believe how few guys that have bad credit and little personal savings.
brownmonster
Man of Great Wisdom
The payroll deduction makes it so easy. It's like a tax that I actually get to keep.
Many drivers would never save a nickel, if they had to do it on their own.
Yes their are better options than the 401k but most people aren't disciplined enough to save.
brownmonster
Man of Great Wisdom
The limit is only $6500 in an IRA for 50 and older.
I meant better investment options.
I can't believe how many don't save anything at all.
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