Two things. Many more choices and...
If you have money in the Roth 401k and leave it there you will be forced to take an RMD on it at 70 1/2
Anyone out there drawing a monthly stipend from their Teamster/UPS 401K?
- Thread starter brownmonster
- Start date
If you have money in the Roth 401k and leave it there you will be forced to take an RMD on it at 70 1/2
Brownslave688
You want a toe? I can get you a toe.
And to simplify and have all of your accounts under 1 umbrella
That way nothing gets forgotten about if you happen to pass away.
Don't IRAs have an RMD at 70.5 as well?
Not for the Roth. Many people don't know that about having ROTH money in the 401k, that you are forced to take money out. Something to think about.
brownmonster
Man of Great Wisdom
The purpose of these accounts is to take money out and use it. I don't want to live like a pauper so my kids can be rich someday.
I agree with you. But you don't want to burn it up too soon. What happens if you pass away before your wife does? Are you taking the 100% survivor option on your pension?
What happens if your pension gets cut?
brownmonster
Man of Great Wisdom
My goal is to take out money at a clip that doesn't shrink the principal over time. We have a sizable nest egg of many hundreds of dollars. We are looking at pension options but are leaning towards taking the full amount and she gets half when I croak.
They say 4% withdrawal is about the max if you still want a little growth. So you would need at least 600k to withdraw 2k a month.
brownmonster
Man of Great Wisdom
5% would get me that 2k which I could back off from when our SS and the wife's 401k kick in.
Honestly I hope you talk to a professional and let them map everything out for you.
brownmonster
Man of Great Wisdom
In process.
Hope they can work out some numbers for you.
Brownslave688
You want a toe? I can get you a toe.
Depends a lot on his risky you're willing to be. And if the market tanks an individual can choose to take out less so they don't destroy their savings.
This is why pensions take such a huge hit during market downturns.
Just imagine if you took out 5% and the market went down 10%. That's a huge hit.
Brownslave688
You want a toe? I can get you a toe.
That you're trying to make up with a smaller pool of money
oldupsman
Well-Known Member
I'm a little confused there. You said taking the full amount and she gets half when you pass. If you take the full amount,
she won't get half.
How the market goes at the beginning of your retirement can really make a big difference
brownmonster
Man of Great Wisdom
If I take the full amount she gets half. I can choose a 75% or 100% option and that would reduce my pension.
That's a pretty good deal, in ours if you take the full amount your spouse gets nothing if you die.
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