I resigned from Honeywell several weeks ago (my choice). Now I would like transfer my lumpsum pension from Honeywell to other providers. Can you please tell me on how to begin this process.
11 replies (most recent on top)
I believe in about 2002 you had to chose the old legacy pension or a cash and carry pension .I was talking to a soon to be retired person and he took the legacy pension and said he has no option of the lump sum. FYI: the 401K is also sent to you and brokerage firm for deposit, that was only 2-3 weeks.
If you keep any of the honeywell stock in your 401K, that comes in a separate transaction about 6 weeks. With the current price I am glad I did but will not keep it long.
You need to do a trustee to trustee exchange if at all possible. If you don't know how to do this and a proper asset allocation, you should talk to an advisor. A mistake here could cost you thousands. And do your research on the advisor. Know what you are investing in and why. There are pros and cons to each type of investment.
I was hired in 99
if you were employed less than 5 years or were hired after 2011, you likely can't get it.
they did away with pensions completely in 2012 in lieu of increased 401k match. At which I laugh, because Cote took away / slashed the match on a few occasions.
Do you have to sign up in the beginning to get lump Doetried to get lump sum,they said I couldn't get it.
I dont think he's talking about his 401k. I believe he wants to cash in his company pension. I did this when I got RIF'd. It's a good idea, because you may never see this money if you leave it with HW.
Contact the benefits center and tell them you'd like the lump sum payout of your company pension. They'll make you jump through some hoops and sign some forms and it takes a few weeks, I think they do them in batches every quarter or something. You have to have at least 5 years with the company and it amounts to about 3% of your total earnings with the company.
Make sure the check is written to your IRA provider or you get to pay Uncle Sam.
Absolute key point is to have the check made out to your Fidelity or other company, not you. Those companies will be glad to help.
I did mine with Fidelity, they could not have made it any easier. Went to a local office and they called to do the transfer with the Honeywell pension. The only problem was that Honeywell sends the check to you and you have to take it to the brokerage firm. The check is made out to the brokerage firm and you. They do not do Electronic Transfers.
I rolled over funds several times through my 37 years at Honeywell. Same process now that you're no longer there. My broker even got on the phone and helped during the process. The new firm can help you once you've decided on one.
Others has provided the instructions here.
If Honeywell still has the possession of the lump Doewould call Fidelity, for example, to process a DIRECT TRANSFER from Honeywell to Fidelity. You DO NOT touch the money to avoid taxable events. I did this with one of my previous employers. If you already got the lump sum, you have 60 days, I think, to deposit the money in an IRA account, to avoid taxable events.
Its important that you roll over your pension lump sum to a IRA soon, there is a time limit to avoid a large tax penalty. You can do it yourself by opening an IRA account yourself at (for example) Fidelity Investment. However I would strongly advise that you talk to a certified financial planner to be sure you do this correctly and also at the same time review your retirement plan,