Has anyone looked into the HCL 401k? Trying to figure out if it’s worth rolling the VZ 401k into it or just going with a private IRA.
Also, I’m 56 with 35 years and retirement eligible with a pension. Does anyone know if we can sit on taking the lump sum until the fed interest rates go down and the lump sum goes up?
Pretty sure you can sit on it until you are 65, but check out the documention (SPD) out on benefits connection to confirm. No way would I take a lump sum now with the interest rates what they are, unless it was the only money I had.
The pension lump sum is just so low right now due to the high federal interest rates. Should we take the lower lump or go with the pathetic annuity?
HCL FAQ sheet said that if you are currently qualified for retirement, as in, you can retire RIGHT now or by Oct 31, you can begin collecting your Verizon pension AND work for HCL because won't be the same company anymore. Double dip!
If I was you, I would retire using thr rule of 55 and take that lump sum and roll it into a ira
Rule of 55 only applies to your CURRENT employer sponsored 401k plan. Once you roll it out to a brokerage, you can no longer access penalty free. Do your research on rule of 55 AND consult with a financial planner before you consider moving anything.
You can only withdraw money from your current employer-sponsored retirement plan. You cannot withdraw money from an older retirement account, or from a traditional, Roth, or SEP IRA.
Interest rates are high and although near a peak, they will start to come down sometime next year, but the days of 0% rates are long gone. If you leave your 401K where it is, you are no longer able to contribute to it. If you roll it over to HCL, you will almost certainly have fewer options and not likely to have better fund options.
Your best bet is to roll the 401K into a brokerage rollover IRA account, where you can invest it in anything you want, from individual stocks, mutual funds, exchange traded index funds, bonds, CD's and money markets. Once you are 55, if you are laid off, you can utilize "the Rule of 55", which states you can begin taking distributions without any penalty. If you choose to go back to work full time, you will have to wait until you are age 59 1/2. CD and money markets are earning 5.25% and better now, and once the Fed starts to lower interest rates, that will create positive tailwinds for the stock and bond markets overall. Plus given that we're heading into an election year is almost always a positive for stocks.
Yeah I'm in similar boat . 53 with 32 .
Missed the boat on the O % gatt.
Not gonna happen again anytime soon ..IMHO.
So...me , stick around another year or two , take the annuity , live a healthy lifestyle and maybe a modest buyout will be in the near future.
Those combined will offset the lost lump sum.
Be well , good luck!
Leave the VZ 401k where it is. If you roll it elsewhere before you are 59.5 you can't touch it without penalty, unless that's not a concern for you. Yes, you can sit on the lump sum. I got lucky when I left. The rate was 0%.
Also I would roll it over to a personal IRA!! That way you can invest in anything - even money markets are over 5% now.
To OP :
I agree with @naj . Relax. Do not move anything for now. Take your time. You will still be able to move funds around and access the VZ 401k after the transition. You just won't be able to contribute to it. I highly doubt HCL 401K has better funds to move the money into. Take your time to explore IRAs and your options.
That lump sum really su-ks right now. Mine is down 35% from its high in early 2021.
Leave the 401k with Verizon. Since you are over 55 you can access it penalty free (unless you move it).