Thread regarding AT&T layoffs

BROKERAGELINK ... read about it ... you have all the options of an IRA in your AT&T 401k for up to 50% of your money while working.

When you leave you can roll your pension into your 401K then get both draws out of the 401k that way if you are 55 or older and leaving AT&T.

You can roll other existing IRA's or 401ks into your 401k .. AT&T is a company that allows this, so you can potentially get IRA money backdoor before age 59 1/2

When you draw out your money from your AT&T 401k ... after tax contributions would come out first, so if you maxed your 401k and had been saving even more with after tax money, you can draw those funds out and they will have taxes on the gains only for however long you can stretch the after tax funds.

If you retire and your spouse still works, they can contribute to an IRA for you if they make enough income to cover both peoples $7000 amount, so basically can be pulling money out of one and adding to another, if you can afford to do it.

July 2020 guy again.

The Rule of 55 only applies to the 401k associated with the employer that you leave work at age 55 or later. So if you have old 401k's from former employers, it helps to get those rolled into your current employer's 401k (at&t in our case) so that the added dollars are available in the current employer's 401k when you leave (if that makes sense). You can't Rule of 55 from a former employer's 401k. It's got to be the current employer who let you go.

Personally I'm content to leave the 401k money where it is because I want a widely diversified portfolio so Total Market, Total Bond, and Stable Fund is fine because it's what's got me here. But each investor should choose the path they think is best for them.

And yes, no alarm clocks means you can wake up when you want to (even if it's earlier than when you were working). I've become a big fan of afternoon naps LOL.

Yes,leave 401 k with fidelity.I’m 56 and 401k should carry me beyond 591/2 to enjoy lump sum and then social security!

It works great. I retired at 56 and then at at 58 started a monthly income from my 401K. At Fidelity. I am 61 now and it is still streaming along just as planned.

I do no know why more financial planners do not advise their clients about this IRS rule. I guess they want you to go to commissioned based IRAs instead.

The advantage of rolling over your 401k to an IRA after 59 1/2 is you can invest in different types of mutual fund or stocks and bonds. I think if you leave it in the 401k AT&T plan you are limited to certain investments and your not getting the company match after leaving the company. It’s good to spend time investigating all options before a decision.

You can roll into an IRA and you won’t pay the 10% penalty unless you make a withdrawal before 59 1/2 years of age. Anyone who has questions call Fidelity, that’s what they get paid for. I called Fidelity when I turned 59 1/2 and withdrew from my retirement account. The money withdrawn will be taxed as income. The people that post here are not always accurate. Call Fidelity, they probably have Spanish and any other language you may need to understand.

Fidelity let me move my Rollover IRA from former employers to the 401K. Another nice feature and brokerage link offers tons of investments in the Fidelity 401K

you are welcome!
if you are younger than 55 and have a ton of coin in your 401k - 72c distributions might work for you. I confirmed with Fidelity that the ATT 401k supports rule of 55.

yup, since i am under 55 i am trying to catch on with another company and rollover my 401k to their 401k instead of an ira for this very reason. i think there are some important caveats to the 55 rule, like the 401k you withdrawal from needs to be from your current or last employer, and you need to be 55 in the year that you quit. also, 401k's might be better protected from bankruptcy than an ira. fidelity was trying to push me very hard into rolling over my t 401k to an ira with them and let them manage my account. when i brought up my plan they were kind of stunned that i knew this and were disappointed i did not do the ira conversion.

so in order to take money out of the 401k at the age of 55 - must you stay working for vader or just leave the money in the 401k ?

I actually get up earlier without the alarm clock go figure!

agreed.
About the only thing posted here with any sign of intelligence in the last 6 mos.

I replied in the 401K Rule of 55 thread (I was the one who left in July 2020). Truly happy, I am, that you can take advantage of this option also. While there are similarities between 401k's and IRA's, there are also differences and being able to take partial distributions is one. Welcome to the land of no alarm clocks!

IRAs can be hit too, without a 10% penalty using a Substantially Equal Periodic Payment (SEPP) plan.
https://www.investopedia.com/articles/retirement/02/112602.asp
Once starting SEPP payments, you must continue for a minimum of five years or until you reach the age of 59½, whichever comes later.

This can start at any age. There are 3 different formulas that can be used to calculate the yearly payout.