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smokin'joe

smokin'joe

Just Smokin' the Blues...
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i would like to know if anyone had planned to go out at age 55 on the pension plan like me but now has realized that you cannot draw 401k until age 59 1/2? that means that not only did you lose 5 years of early retire, you also lost all monies to be recieved during that 5 years.
 
I had it planned that way since the day I started here. Will be revising my plan in the next couple of weeks.
 
Yes I saw that but it happens... Draw a substandard pension at 55 or wait a couple of years and take everything at 59.5.... I'll take the extra time for more $$ later...
 
early retirement

have you reached the rule of 85 yet? If you have i think you better look at it again.The rules have changed, you now can draw off your 401 at age 55. it use to be 591/2. before you get all worried about this check with the benefits office.
 
cbsnowman said:
have you reached the rule of 85 yet? If you have i think you better look at it again.The rules have changed, you now can draw off your 401 at age 55. it use to be 591/2. before you get all worried about this check with the benefits office.
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Thanks for the update on the age I thought it had changed but I wasn't sure...

Welcome to the boards, cbsnowman
 
smokin'joe said:
i would like to know if anyone had planned to go out at age 55 on the pension plan like me but now has realized that you cannot draw 401k until age 59 1/2? that means that not only did you lose 5 years of early retire, you also lost all monies to be recieved during that 5 years.
Click to expand...

Thats a great point smokin'joe. I think a lot of people forget about the age requirements for drawing from a 401K without penalties
 
thanks, I just hope everyone actuallly looks at the whole retirement package. If they do they will find that it does benefit everybody. I will be reaching my rule 85 in 5 years at age 56, and it will make my retirement much better. you have to keed in mind, the employee has to take more responsibilty for his retirement and do the best that he or she can to max out your 401 each year. t rowe price has so many ways to infest that it does not take a rocket scientist to make money. and if you are in that group tha:bananalama: that has ten year, you are getting 11% free money. How can that be so bad?
 
cbsnowman said:
have you reached the rule of 85 yet? If you have i think you better look at it again.The rules have changed, you now can draw off your 401 at age 55. it use to be 591/2. before you get all worried about this check with the benefits office.
Click to expand...

cbsnowman, I believe your information is incorrect. I got this information right from the Fidelity website.

"There can be, depending on your age and retirement status when you withdraw. Generally speaking, you will be assessed a penalty equal to 10 percent of the taxable amount of your withdrawal if you withdraw money before you reach age 59 1/2. There are some instances when you may not have to pay a penalty. Keep in mind that you must pay income taxes on all withdrawals of taxable money, unless you directly rollover the eligible money to another employer-sponsored plan or to an IRA. If you choose to take a withdrawal, 20 percent of the taxable portion of your withdrawal will be withheld. (You may owe more or less than this amount when you file your income taxes, depending on your tax bracket.)"

You can go to Fidelity's site Fidelity: Withdrawals and scroll down to question #4 for more information.

P.S. Welcome to the boards
 
CFer,
Check with our benefits office, i got this info from a manager at XGO. he had an email in his hands that stated this.This question was raised during the meetings yesterday. If you find out something different, please post it. It would be nice if we keep all the info acurate on this board.
 
cbsnowman said:
CFer,
Check with our benefits office, i got this info from a manager at XGO. he had an email in his hands that stated this.This question was raised during the meetings yesterday. If you find out something different, please post it. It would be nice if we keep all the info acurate on this board.
Click to expand...

cbsnowman, I am not a Conway employee so I have no way of checking with your benefits office. My post was based on my own knowledge and reasearch of 401Ks. I posted a link directly to the Fidelity site to back up my statement. Is it possible your manager was misinformed?

If I'm wrong, please supply a link to your information because I know nothing about this and would like to hear more.

Thanks

CFer
 
Well I am retired and I can tell you the 59 1/2 rule still applys.If I touch my money I pay the normal tax plus a 10% penalty on it as well.I rolled my money over to ING and its making a lot of money for me. Don't believe the 85 rule till you see it in writing from Uncle sam.
 
Mozartsghost said:
Yes I saw that but it happens... Draw a substandard pension at 55 or wait a couple of years and take everything at 59.5.... I'll take the extra time for more $$ later...
Click to expand...
Your so happy.:puke:
 
Dirtball said:
Well I am retired and I can tell you the 59 1/2 rule still applys.If I touch my money I pay the normal tax plus a 10% penalty on it as well.I rolled my money over to ING and its making a lot of money for me. Don't believe the 85 rule till you see it in writing from Uncle sam.
Click to expand...

The 85 Rule everyone is refering to is a Con-way Inc. thing... If your age plus years of service equal 85 or greater you can retire with no penalty from the con-way retirenemt plan (Pension, etc.)

That has not changed with this new benefits package.
 
CFer said:
cbsnowman, I believe your information is incorrect. I got this information right from the Fidelity website.

"There can be, depending on your age and retirement status when you withdraw. Generally speaking, you will be assessed a penalty equal to 10 percent of the taxable amount of your withdrawal if you withdraw money before you reach age 59 1/2. There are some instances when you may not have to pay a penalty. Keep in mind that you must pay income taxes on all withdrawals of taxable money, unless you directly rollover the eligible money to another employer-sponsored plan or to an IRA. If you choose to take a withdrawal, 20 percent of the taxable portion of your withdrawal will be withheld. (You may owe more or less than this amount when you file your income taxes, depending on your tax bracket.)"

You can go to Fidelity's site Fidelity: Withdrawals and scroll down to question #4 for more information.

P.S. Welcome to the boards
Click to expand...
If u are retiring , that is a life changing situation u can collect401 at55
 
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