Archived What happens to 401k and pension when quitting?

[livetocry]

Are you able to withdraw all 401k and pension when you quit?
Do you get one big(or small) check for the balances?
Are there heavy tax penalties for withdrawing before retiring?
Are you able to withdraw all of 401k it before you quit?

.....asking for a friend. Thanks in advance for the help!

 

[Hardlinesmaster]

33% tax on 401k. Transfer to another 401k to avoid tax.
https://www.thebreakroom.org/thread...k-contributions-if-when-i-leave-target.15540/

 

[qmosqueen]

Oh no you know where it all goes to Brian. Lol.

 

[Hardlinesmaster]

Wait for 10 year Anniversary & leave on good terms. Also, can your friend retire from spot?

 

[livetocry]

it'll be 15 years in march sigh.....

 

[Yetive]

You also have to be 55 to retire. I know that you used to be able to leave your money in the 401k until retirement. You could still move money around, and manage it, but could not continue adding to it. Not sure if that's still possible.

 

[redeye58]

From what one of our retirees told me, you can roll your pension into another fund like an IRA & the same with your 401K.
Far better to do that than get socked with hefty penalties.

 

[Hardlinesmaster]

↑
Not necessarily. Have to be 55 to retire.
From targetpayandbenefits:
You may be eligible for the Target retiree discount privilege, as well as a retirement gift, if you meet all of the following criteria:❏❏ Are at least 55 years old when you leave the company.

1. Have 10 years of credited and continuous service, starting after your latest hire date. A year of credited service is a calendar year in which you were paid for 1,000 or more hours. (If you were age 45 or older and an active team member on December 31, 2002, five years of credited and continuous service will qualify under the grandfathered rule. Note: If you left the company and were rehired January 1, 2003 or after, you need to meet the 10-year eligibility rules.)
   
   If you are eligible for a retirement gift, you will receive information in the mail approximately two months after your retirement date.

 

[RhettB]

It would be nice if you could take your 401K balance and move it to a different means. I've spoken to my moms wealth adviser. He could make me a far greater return on my money than what our 401 has to offer.

 

[Yetive]

It would be nice if you could take your 401K balance and move it to a different means. I've spoken to my moms wealth adviser. He could make me a far greater return on my money than what our 401 has to offer.

Did you check out the possibility? When you leave, you can roll it over, so I wonder if you could roll part of it to somewhere else while still keeping/contributing to the TGT plan.

 

[RhettB]

Not leaving, just my $120,000 could grow faster elsewhere.

 

[Yetive]

Probably. My sister in law works for a financial planner. Once a year, I print off all the plan info and her boss tells me where to put everything. So far, so good.

 

[RhettB]

Probably. My sister in law works for a financial planner. Once a year, I print off all the plan info and her boss tells me where to put everything. So far, so good.

Those funds can change regularly though. A planner will move things weekly, monthly, whatever. Even with the Financial Engines, its not making what it could elsewhere.