Is there a fixed time that we need to start our pension after last day of employment?
For rollover option, can we choose any fund manager for CVX retirement fund and Fidelity ESIP?
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Enjoy hiding under the bed?
Wrong. Way more states than Wyoming have issues with non-BKO creditor protection of IRAs whereas if the money was in a 401k, you’re golden.
I’d exercise caution in California for example.
https://www.thetaxadviser.com/content/dam/tta/issues/2014/jan/stateirachart.pdf
Run the numbers again before cashing out. At the moment, my numbers is best for 4/1/2021, while 2 weeks ago 3/1/2021 was better
The only state that does cover IRAs is Wyoming. Everywhere else you are safe. Or just pay your bills.
Wrong. ERISA protection on rolled-over assets only pertains to Bankruptcy filings, not to creditor claims.
Yes, January rates were very good. Actually they haven't changed much in the last quarter.
January rates were the best for receiving your lump Doelearned after running the numbers.
No, ERISA accounts which are rolled over to a IRS retain full protection in all states.
Be careful as you lose ERISA protection by doing that. Make sure you live in and will continue to live in a state that provides both unlimited BKO protection AND unlimited creditor protection for rollover IRAs from 401ks. The latter varies state by state. Suppose you were sued for an auto accident k–ling someone else. You have $3million. So you also have a $3 or $4million Umbrella policy. “Great!”, you think. Wrong. They can sue you for $6-$7million then to try to take your assets and your umbrella payout. Will a jury award it? Who knows. If you can settle before trial, the umbrella insurance company will make the acceptance of the insurance funds contingent on them absolving you of further claims. But if it goes to trial, anything can happen. But if you lose the court trial, they can’t come after ERISA protected accounts. IRAs very state by state on this.
I rolled pension lump into new Fidelity Rollover IRA, which allows some option and trading opportunities that Fidelity BrokerageLink does not allow.
November rates were low but Dec even lower.
From what I understand the rates favor a November retirement date and subsequent rollover but don't let the actual facts get in the way of your inflated opinion of your own "retirement timing" if you will.
Back to the OP’s first question: “Is there a fixed time that we need to start our pension after last day of employment?” — The simple answer is “No”. There is no fixed time a retiree has to start their pension. You can decide to start your pension a year later if you like, but I cannot see a good reason to delay it. Either take the annuity or rollover the lump sum to an IRA or the Chevron ESIP 401k plan.
IRS just released the new rates. Low but the averages still favor Dec 1 retirement date as lowest ever.
The rates are so good right now I am rolling it out ASAP. If conditions were different I would let it sit for another 3 years until I reached age 60 To avoid the reduction. After age 60 no reason to delay except in the unlikely case you can predict where interest rates are heading short term.
I am having mine dumped into the ESIP and then rolling that ESIP into my new company's 401k which allows almost the whole amount to be placed into Fidelity BrokerageLink and allows all forms of trading except margin and options. If you have such an option available to you, I think it could be more ideal than rolling it into a pure rollover IRA. The reason for this is that depending on what state you live in (or may end up living in), the amount rolled over from a 401k retains its ERISA untouchability for federal bankruptcy proceedings but may not be fully protected for regular creditor claims. You can research this on asset protection sites by googling IRA Creditor Protection by State.
On your last question - call fidelity and they will set up a IRA account number for you, then you contact HR and there is a form for the wire to that account, which should be included in your larger packet that has to be supplied them for pension lump sum. If in doubt, contact HR as they were helpful over phone for me as well...
It is nice that Chevron still has a pension
Mine is scheduled to roll over at the end of the month.
Did you have to fill out paperwork for the rollover to occur? I have set up the account at Fidelity; but haven’t given any information to CVX yet; Just wondering on the time frame.
earliest is typically one month after retirement date. Go on HR site and review calculations for first month, next month, etc. For me, I left in summer, but best lump sum was December ( I changed it with HR twice). The numbers change based on interest rates, and rates are beginning to rise a bit, so lump sum goes down. I rolled mine straight to Fidelity IRA, and they are pretty decent and after rollover, you see and can manage your accounts from one place. Fidelity typically calls you and offers assitance.
No, and yes. You are in control.