This is a question for WF old timers that have the Retirement annuity with Metropolitan Life (80’s) and the Cash Balance Acct. Did you wait until after severance to roll over to another financial institution or cash out? Can they be moved out as soon as working notice ends? My time is coming soon, and yes In was told in advance to expect layoff in Q2, so I’m trying to plan in advance. Thank you!
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Put the biscuits in the gravy and enjoy!!
I retired at 69 two years ago after over 30 years with WF. I rolled the cash balance account into a IRA held at another institution. I opted not to take the monthly amount. I am single which made the decision easier. The problem with it is that if you die, it disappears. The metro life annuity was initiated at retirement. The amount does not change. Good luck with all the decisions.
I was able to roll the cash balance plan into my existing IRA along with my 401k. Able to get the money into the market in 2021 was a strangely incredible benefit from getting laid off. The money was doing zip.
I left last year. I left the Cash Balance plan as is. I recently received a notice that it’s time to do something with it. I called the number provided and was told I could cash it out now with a 20% tax penalty and then an additional 10% early withdrawal penalty. I could roll it over if I wanted to. OR you can leave it, but in my situation I cannot access it until I’m like 77. I am working with a financial advisor now to get my 401k and the cash balance plan monies transferred elsewhere.
PO, apologies for not being clear in the/my first post. It can NOT be rolled-over while still an employee or during noticed period.
You should go to the plan admin site and read the Summary Plan Description for the Cash Balance Plan.
The cash balance plan you can roll over or cash out. Depending what you have in it, it will do either automatically.
The plan docs last year said that if you don’t initiate something (cash out or roll over) within a certain timeframe, it’ll automatically roll over to empower if you have over $x. I don’t remember the limit but if you’ve been around since the 80’s, you’ve probably got a decent amount.
If you cash out before retirement age there are tax penalties similar to 401k.
I didn’t have a ton in mine so I cashed out. They have a drawn out processing schedule so it can take a couple of months.
The Cash Balance Plan cannot be rolled-over. It is a Wells Fargo-specific.
On Cash Balance Plan you really need to talk to the admin for the program. The FAQ includes statements such as "... You may begin payments before normal retirement age, but usually not before your termination date..." Which means different scenarios will have different options and/or stipulations. You can not go by what someone else did.