401k question

[biz2008]

I was talking about a complete withdrawal,but i see your point on the claiming the withdrawal as income tax.

Thanks for the reply

Can i transfer to another 401k provider?

 

[UpstateNYUPSer(Ret)]

I was talking about a complete withdrawal,but i see your point on the claiming the withdrawal as income tax. Thanks for the reply

Yeah, you would lose 20% off the top right away and then you would have to claim the withdrawal as income and would have to pay tax on it so you could stand to lose quite a bit of money, depending on how much you have in your account. I don't blame you for being nervous--I have watched my 401k free fall and have moved my funds around to try to stop the bleeding. The good thing for me (and for you, I assume) is that I have time (11 years for me, much longer for you) before I retire and start to take money out so things will turn around.

 

[UpstateNYUPSer(Ret)]

Can i transfer to another 401k provider?

I don't believe so but there is nothing saying that you have to participate in the 401k. There are other retirement savings options out there, to include both the traditional and the Roth IRAs, savings accounts, CDs, mutual funds, etc.

 

[biz2008]

Jon, you are correct in that you have to leave the "www" off for the link to work.

I am amazed at the number of people who have 401k accounts who don't have a clue. Go to the website, take a few minutes and READ. You can learn all about loans and the situations under which you are allowed to borrow money, withdrawals and the different kinds and situations you are allowed to withdraw money and the penalties associated with withdrawals, contributions, fund transfers, how you want your contributions allocated to the fund(s) that you have chosen to invest in.

It is your money and what you choose to do with it is entirely up to you. I certainly think it would be worth taking a few minutes to do some research--all of the information that you need is in one place.

teamsterups.csplans.com

Its true they do explain the different situations under which you can make withdrawals and the penalties and also the situation on hardship withdrawals...but after reading you have to wonder who money is it,because they make it hard to get your money.

 

[UpstateNYUPSer(Ret)]

Its true they do explain the different situations under which you can make withdrawals and the penalties and also the situation on hardship withdrawals...but after reading you have to wonder who money is it,because they make it hard to get your money.

That is by design. Your 401k is meant to be a retirement savings vehicle, not a piggy bank that you can dip in to whenever you want and/or need to. The money you put in to your 401k has not been taxed. That, along with the fact that your contributions reduce your net taxable income and thus reduce your net tax burden, is one of the chief benefits of a 401k.

Now, if you truly do need your money, you can apply for a hardship withdrawal. The application process can be initiated online. Yes, you will lose 20% and be taxed on the balance, but, if you truly need it then that option may be available to you.

 

[biz2008]

I don't believe so but there is nothing saying that you have to participate in the 401k. There are other retirement savings options out there, to include both the traditional and the Roth IRAs, savings accounts, CDs, mutual funds, etc.

Yes i'm aware of other retirement plans..infact i have other investments,but i am concern about the fact that with our teamster 401k we only get what we contribute and no matching funds.So i geuss its best to let what i have in my 401k ride for the best and stop my contribution and focus on the investments that i do have more freedom to control,transfer to other accounts and withdrawals if needed.

Thanks for the reply.

 

[IDoLessWorkThanMost]

While you are splitting hairs and advising to read carefully, I will point that nowhere in Spitts post does he say he is in a right to work state. It can be assumed, but was not stated in his post.

On a side note, shouldn't it be call a "right to free union representation if I'm to cheap pay dues" state. For those who don't know, the union is still obligated in these states to represent these right to workers when they get in trouble. I say let these scabs go to the gallows alone wishing they had the assistance of the rank and file rather than having their cake and eating it too.

now wait a minute - if he/she is a package handler, and non-union, does that not mean the person MUST be in a right to work state? SO stating that I'm calling the kettle black isn't going to work.

Admittedly , I am not as well-versed as some people are in this. If I'm wrong I'd rather know better, so please, correct me if I'm wrong.

 

[biz2008]

That is by design. Your 401k is meant to be a retirement savings vehicle, not a piggy bank that you can dip in to whenever you want and/or need to. The money you put in to your 401k has not been taxed. That, along with the fact that your contributions reduce your net taxable income and thus reduce your net tax burden, is one of the chief benefits of a 401k.

Now, if you truly do need your money, you can apply for a hardship withdrawal. The application process can be initiated online. Yes, you will lose 20% and be taxed on the balance, but, if you truly need it then that option may be available to you.

Thank you for your reply.

 

[Bubblehead]

now wait a minute - if he/she is a package handler, and non-union, does that not mean the person MUST be in a right to work state? SO stating that I'm calling the kettle black isn't going to work.

Admittedly , I am not as well-versed as some people are in this. If I'm wrong I'd rather know better, so please, correct me if I'm wrong.

I agree. Was just using your post as a platform to get in some digs against the whole right to work premise.

 

[IDoLessWorkThanMost]

I don't understand the point you are trying to make. Please elaborate. Without the attitude.

My understanding is Spitt is a package handler and therefore part of the Bargaining Unit. But he is non-union because he never joined the Teamsters. This makes him eligible for the union 401(k). If he was management, he would be eligible for the management 401(k). The one with the match.

What am I missing?

Do you at least agree that the link you provided will not work because you added a "www" where there shouldn't be one?

I did not know that a non-union hourly package handler could enroll into the Teamsters-UPS 401k, but it does make sense after reading more about it. Thanks.

 

[brownmonster]

I like all these retirees on TV that lost all their 401k money and are struggling. Hello, put it something safe when you retire or risk losing it.

 

[UpstateNYUPSer(Ret)]

I like all these retirees on TV that lost all their 401k money and are struggling. Hello, put it something safe when you retire or risk losing it.

Isn't that just a bit harsh?

The 401k is an ideal retirement savings tool which allows you to contribute before-tax money and withdraw it later at a lower tax rate and even deduct the amount that you contribute annually from your gross income on your income taxes which reduces your net income and your tax burden.

 

[cachsux]

Maybe he was trying to say as you near retirement you should move your funds into a low-no risk fund,etc, to protect your earnings.

 

[UpstateNYUPSer(Ret)]

Maybe he was trying to say as you near retirement you should move your funds into a low-no risk fund,etc, to protect your earnings.

Which makes a lot of sense as you want to stabilize your financial position as you near retirement.

 

[brownmonster]

Which makes a lot of sense as you want to stabilize your financial position as you near retirement.

That's what I meant. My attitude is pretty harsh with all the other crap going on and bailing people out. You build in a fllood plain. Too bad. Don't listen to financial people and keep your money 100% in stock when you retire. Too bad. Buy a home with an adjustable rate mortgage and then are suprised when it goes up and you can't afford a $300,000 house on 32 grand a year. Too bad.

 

[Bubblehead]

It is a little known fact that the 401K system was never created with the intent of it being a retirement plan. It was originally designed to be a tax shelter for employees of the Kodak Corp who were enjoying record profits. The large profit sharing awards were pushing some employees up into the next tax bracket. It's popularity grew as some employers began to use it in lue of a pension. They offered contribution matching programs knowing that a certain percentage of employees would not have the discipline to participate. As this retirement system evolved corporate america has reduced its burden of retirement contributions from roughly 80% to less than 50% for retirees over the last 40 years. Just another shining example of corporate greed. Where does the extra money end up. In the CEO's and high ranking exec's golden parachutes. Neat.