Does anyone know if USbank 401k has rule of 55?
I need to retire ASAP, but a few years away from 59
38 replies (most recent on top)
@OP look at the the two condensing a-s wipes . F off you annoying f*ck tards.
Do people on here realize many people are on a defined benefit plan? Not everyone is on a cash balance plan. The older plan is significantly better and that is why the bank froze it to new hires ~2008. The OP specifically asked about his 401k. None of us know if he/she has a cash balance plan. Why is that so hard to understand?
You educate the illiterate, th+!
You da man! Educate the fools that doesn’t know all 401k plan allow withdrawal at 55
@ra
"not all 401k plan allows withdrawal at age 55" - this is a straw grasp and deflection. US Bank does offer the plan, all you had to do is read. The funny part is you fail to mention the size of the company matters on if they offer the plan. Not all companies do it or not is irrelevant.
"Why is q1 talking about pension when someone has a question about 401k plan " - because the cash balance plan has a rule of 55 as well, meaning you didn't know about that either and may have lost a lot of money over the years. Because the stocks were not doing well when the cash out could have went into other assets that increased in value. You basically let your 5-6 figure balance just sit around and take a beating.
You probably didn't even know about the HSA money market account that many people use as investment growth and can pull out tax-free.
The only thing keeping you blabbing is Dave Ramsey is not here to put you in your place about being financially illiterate about your own money. Embarrassing.
@ra you are correct 99%. Our plan does allow after tax now.
Q1 is the troll that doesn’t know not all 401k plan allows withdrawal at age 55. He also doesn’t know difference between 401k and a pension. Why is q1 talking about pension when someone has a question about 401k plan at USBank?
He does realize just because laws allow rule of 55, it’s up to your 401k plan? similar to After tax contributions. Many 401k plan allow after tax contributions, but ours do not
@q1 troll
Hi I'm the original poster - it's your fault I don't understand my retirement planning! I'm going to browse in guest/incognito mode to play with the upvote/downvote, I'm going to name call because I don't understand my own personal finances!
I don't know why people are being so rude in this thread. I have had to tap my 401k using this rule. You should confirm with Fidelity as the summary plan description doesn't go into much detail, so it was very unclear. I left at 55 and am allowed 1 withdrawal per month, but it can take about a week to process. Good luck!
@kg Are you the dipsh-t that thinks all 401k plans allow the rule of 55 and the cash balance pension is the same as a 401k? You are too stupid to know how stupid you are.
@fj Don't understand your finances, but getting mad and crying for not knowing how the money you earn works to random people online. And work at a bank, think about that. All this information is online. What an embarrassment.
Rude!
@a9
It would make me feel better if the person who wrote the first response would apologize and admit they were wrong. Maybe you were having a bad day. We all make mistakes.
Can you imagine working with that person talking about cash pension when someone is asking about 401k plan?
Question-Are we in compliance with the KYC -policy?
Answer-No, you need to pay your credit card by the 21st to avoid penalty!
@f8 I'm so stupid I don't know the difference between too and to or it's and its or even effect and affect. I'm so d-mb I try to avoid those words! I still wouldn't write about cash balance plan rules to belittle someone asking a question about 401ks.
@f6 I know exactly how stupid I am. I'm just not so stupid to belittle other posters asking questions about U.S. Bank 401k distribution rules by talking about cash balance plans. Not so stupid to be embarrassed about questions on tax rules I obviously don't know the answer to. But as stupid as I may be at least I'm not the d-mbest employee on this thread.
@ed please stop calling people stupid. i guarantee you are mediocre at best.
In around 2008/9 the bank cancelled the defined benefit plan to new employees and then encouraged vested participants to switch into the cash balance plan. If you are in the defined benefit plan (and it is substantial) I recommend looking into diverting some of your 401k into the Roth, even if you are in a relatively high tax bracket because you will get nailed by RMDs with all that pretax income.
Don't take this as financial advice as I am not your financial advisor. Just look into it because you don't want to be in a position where all your assets are not accessible before you turn 55. The OP is probably o.k. but some of us want to retire (or are forced to retire) before that.
@e4 Not knowing the difference between tax planning specific to U.S. Bank's 401k rules and finance doesn't exactly make you a genius. You are the one that didn't know the difference between a 401k and a cash balance plan. But I acknowledge you are so stupid you do not have the IQ capacity to know how stupid you are.
So, you guys trying to win an argument about being "financially illiterate" while working at a financial institution?
Lovely, waiting to see how this will turn out.
@d8 it's more likely he/she has a seven figure 401k, has been at the bank 20+ years, and is on the defined benefit plan. He/she is probably regretting piling too much money into their 401k but historically enjoyed their job until recently. Never thought about early retirement until recently.
Most people don't even know that the rule of 55 exists much less if U.S. Bank allows it. People tend to be focused on getting as much money as possible into the thing and don't think about tax strategy for early retirement.
WOW!!! How rude can people be especially the last person that had a comment. Insulting people who possibly are co- workers in reference to their lack of knowledge about retirement accounts such as 401K accounts shows a lack of respect. These type of cooments are not needed.
Stupidity is not knowing how to manage YOUR CASH and go on the internet to ask personal finance questions to random people.
Your 401K and cash balance are likely 5-6 figures and you don’t know anything about your money? Asking about rule of 55?
Take responsibility that you lived paycheck to paycheck and start to learn to manage your money. It’s embarrassing you work at a bank asking this question. That tells us all you left a lot of money on the table and just worked a job.
@bw So embarrassing! I don't know proper grammar. But even with an IQ a full standard deviation below average I know a cash balance plan isn't the same thing as a 401k. Where does that put you? I guess you can at least articulate how stupid you are properly.
@bq "Like it's in it's name". Oh my. That apostrophe in the second instance of "it's" is blatantly incorrect. "It's" is a contraction meaning "it is". It is NEVER correct to use the apostrophe with "it" to denote possessive form. You must have gone to public school or perhaps are just mentally challenged.
How many points is a touchdown?
You need to read the rulebook.
What's embarrassing is you don't even know that all leagues give two points for a basket and one for a free throw.
What distance is the Kentucky derby run at?
You need to read about the Indianapolis 500 rules. Like it's in it's name. You should be embarrassed not to know it is 500 kilometers.
How many rounds are there in the NFL draft?
You need to read about the draft. What is embarrassing is you don't even know that the WNBA draft rules. There are two rounds.
AI does not agree with the first two responders. Although the first one seems to be confused by referencing a cash balance plan.
No, not all 401(k) plans allow for withdrawals under the Rule of 55.
While the Rule of 55 is an IRS provision allowing penalty-free withdrawals from a 401(k) (or 403(b)) if you leave your job in or after the year you turn 55, it's up to each individual employer's plan to adopt and allow for this option.
About the first responder: Since you have read everything would you mind explaining what the cash balance plan has to do with the 401k question asked by the OP? None of us even know if the OP is on a cash balance plan.
This is like asking a mechanic how to fix an Acura duel clutch transmission (that has gears) and getting a response about reading the instructions for fixing a Jatco CTV.
It's embarrassing that d-mb coworkers are embarrassed about questions they are too stupid to understand. Could you imagine being so stupid that you are embarrassed about a question because out of your stupidity you think everyone should know the answer, but then obviously not even know the correct answer but are so d-mb you don't realize how stupid you are? The only saving grace is you are so stupid you are completely oblivious to your stupidity (but you are still embarrassed about your coworker ironically because you are so d-mb you think they asked a stupid question).
My answer to the OP is I think the rule of 55 is okay considering Fidelity is the administrator.
The first two responses are as incorrect as they are rude. You were right to question this, as IRS regs permit "rule of 55" withdrawals but do not require employers to offer this. Fortunately, the USB plan does permit this. I know this because I have done it. You should definitely confirm this with HR for your own peace of mind, as I suppose they could do away with this provision in any annual amendment to the plan. I hope you enjoy your retirement, and don't forget to roll the remaining balance into an IRA at a different institution when you turn 59 1/2.
I'm too young to know much about it but yes, I have a couple of coworkers that constantly mention rule of 55 who were laid off last year. I know for a fact they are collecting.
@a9 you should re-read the tax law, its employers discretion if they want to allow partial withdrawals. I can’t speak to our plan, but you don’t need to be a je-k and wrong in the same post.
Has working at US Bank made you guys a--holes or were you born that way? Lately the responses to questions on this site are met with vitriol and sarcasm. Save it for the C Suite and not your fellow rank and file employees struggling to make it through each week.
Yea, it’s embarrassing you do not know ALL 401k allows 401k withdrawals at 55
You need to read about your benefits. What's embarrassing is you are not aware of the cash balance plan and the age of 55. All 401k are subject to the rule of 55, it's a federal rule regarding taxation.