Does anyone have a estimate of lump sum amounts for field techs after 25-30 years of service. I understand there are variables to the amount, just wondering what the approximate range is. Thanks
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@5wdm Where have you been? Read up on the feds recent talks and the mid to near term interest rate environment. The rates will at most be stagnant and remain as such for awhile with the possibility of even going down in the next 6 to 12 months. There is no rush to take the lump in this circumstance. Wait it out. There is always a 3 month window to choose before your exit if you see a rise in rates and a subsequent loss in the lump you will have warning with enough time to leave if needed. That time is certainly unlikely within the next 12 months. Only an EISP will change the formula to your benefit otherwise wait it out.
@4sdo, when you say "today's developments" are you talking about the stock market taking a dive or was there some kind of interest rate announcement that I missed?
Hey @EEB It looks like lumps to be going up at least till end of year based on today's developments. No reason to leave anytime soon without a decent offer.
@4dpe yes . 72T is applicable to anyone over 50.
@3odn I believe you can get at the money before 59 1/2 without the penalty via the 72T. Can someone else confirm this?
@1wvg... Your 401k will "NOT" become an IRA unless you decide to move it, or convert it to one. It will remain the same as it always was and you can keep it if you want, until the company decides to shut it down(if that ever happens). You just can't add any new money to it, besides your lump sum, if you choose to do that. IF you are 55 when you leave, you are no longer subject to the 10% penalty for withdraws under 59 1/2... However, if you convert the VZ 401k to an IRA... then you will have to wait until you turn 59 1/2 to start withdrawing funds without the 10% tax penalty. (Special rule exemption is for the 401k only).... just food for thought.
@Y8Pf3HH-eeb. I did check before posting. The 620 number is for May 1st departure. It goes up about 4000 for a June 1 departure and yes I understand the rates impact the number. They can also go down again as well. At any rate it looks based on the latest Fed information that there will be at minimum a cut in the number of imminent hikes. Word is maybe only 2 built in over the next 18 to 24 months and again things change daily. They could go down a click as well, although I doubt it. The sky isn't exactly falling and K plans are raking it in. Lastly most on the fence should have a k balance more than double this so a hit by a 1/4 point change to the lump won't make or break anyone ready to go. If it did they have no business leaving as they would be unprepared to do so anyway. When one leaves they will be subject to the market even more so. Someone leaving best be ready for that mentally as well as financially. Worries about a 20 or 30 k bounce in the lump should be the least of their concerns.
Go to the about you benefits connection page. It will give you an estimate good for the next 3 months .
@hbr: At retirement your lump sum can be rolled over to any approved IRA. Your company 401k plan will also become an IRA.
You may want check again, with the rising interest rates, the lump sum is decreasing each time they raise the rates.
Are you a TTA field tech ?
There are to many variables to give an accurate number. Age has a larger impact than years of service. Shift differential can add up to 10% to the number as well. and do you intend to include buyout in the amount? Someone in the vague circumstance you describe would be looking at anywhere from very high 400k's to low 800K's excluding any EISP bump. My personal circumstance is 620K with 28 years at 52 YO. A close friend 2 years ago got 820K with 31 years at 49. If you put enough in your 401K the lump becomes less meaningful as my K balance is near double my cash balance. Your K-plan is what will really fund retirement. You should look at the lump as just an extra kicker on top. I doubt there is anyone with a balance over 900. I have only personally seen ones in the low 800's.
It all depends on your age, if your 50 with 30 years of service your lump sum approx (625,000)
You can calculate on the Verizon about you page.