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Old 03-25-2015, 05:39 PM
 
765 posts, read 771,008 times
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How do these retirements plan work out? My jobs has both of these im just not sure how it works
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Old 03-25-2015, 05:45 PM
 
29,764 posts, read 34,851,819 times
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Quote:
Originally Posted by Mr.Professional View Post
How do these retirements plan work out? My jobs has both of these im just not sure how it works
It is called a gold mine waiting for you to pick up the axe and start tapping the possibilities. It means you can have a fixed income pension along with SS and a nest egg on top of. The size of that nest egg is up to you and the decisions you make until something changes.
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Old 03-25-2015, 05:55 PM
 
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Simple explanation:

Pension = set monthly payments you receive at a certain age until you die

401k = money taken out of each paycheck and or contributed by employer that is invested and you can take out when you retire.
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Old 03-25-2015, 06:08 PM
 
Location: California
4,552 posts, read 5,466,666 times
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Careful with pensions as many of them are no longer around. It is best to convert 401K and pension to an IRA so you can control your own funds when the time comes. It is best to consult with a professional financial advisor to get the best information as no one on a public board can know all your situation.
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Old 03-26-2015, 07:36 AM
 
Location: Jamestown, NY
7,841 posts, read 7,323,056 times
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Quote:
Originally Posted by Heidi60 View Post
Careful with pensions as many of them are no longer around. It is best to convert 401K and pension to an IRA so you can control your own funds when the time comes. It is best to consult with a professional financial advisor to get the best information as no one on a public board can know all your situation.
AFAIK, you can't do anything about a pension while working for an employer who offers one, and unless your employer offers some kind of cash buyout when you leave/retire, you don't have any say in changing it to something else then, either. If you leave employment before you have vested in the pension system, then you will get your contributions returned.

Most 401k and 403b plans do not allow you to move your funds into IRAs while you are still with that employer. Many 401k and 403b plans allow for employees to control their funds both during and after employment.
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Old 03-26-2015, 10:38 AM
 
Location: Bend Or.
1,126 posts, read 2,456,760 times
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Originally Posted by Linda_d View Post
AFAIK, you can't do anything about a pension while working for an employer who offers one, and unless your employer offers some kind of cash buyout when you leave/retire, you don't have any say in changing it to something else then, either. If you leave employment before you have vested in the pension system, then you will get your contributions returned.

Most 401k and 403b plans do not allow you to move your funds into IRAs while you are still with that employer. Many 401k and 403b plans allow for employees to control their funds both during and after employment.
If you are 59 1/2 or older there is no restriction or penalty for moving a 401K to an Ira.
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Old 03-26-2015, 10:59 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,167,665 times
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Originally Posted by whirnot View Post
If you are 59 1/2 or older there is no restriction or penalty for moving a 401K to an Ira.
There may not be any restriction or penalty as far as the Government is concerned but the 401K is under the terms of the employer and many if not most do NOT allow you to withdraw any funds and certainly not convert them to an IRA while you are still employed with them.
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Old 03-26-2015, 11:52 AM
 
Location: Northern VA
511 posts, read 631,117 times
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Once you're no longer with that employer there is no restriction regardless of age on moving a 401k to an IRA.

Now if you're talking withdrawals then that's a different story. If you leave your employer in or after the year you turn 55 then you avoid the 10% early distribution penalty. Anything else and it the same IRA 59 1/2 rule.
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Old 03-26-2015, 12:33 PM
 
Location: San Diego CA
4,847 posts, read 3,377,310 times
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Quote:
Originally Posted by Mr.Professional View Post
How do these retirements plan work out? My jobs has both of these im just not sure how it works
Good for you. You have one of those gold plated old school pension programs that are fast going into extinction. Hopefully your employer will continue with it and you can reap the benefits later on.
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Old 03-26-2015, 12:44 PM
 
12,825 posts, read 20,129,272 times
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Pension ... back in the mists of ancient time, in a galaxy far away ... I worked for one company (count it, one) ... they had a pension plan. I never vested, left just ahead of a bad RIF for a much better job, and that was the last I ever heard about this odd concept.
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