I was axed this round, can I wait to take the lump on Jan 1 2021 to get the 2021 interest rate? If the current rate holds it will be a nice bump in the lump sum payout!
11 replies (most recent on top)
The November rates are NOT published 11/15 - they are published (about) 12/15, so in effect, you'll have to make your decision on 2020 vs 2021 based on the October rates (published about 11/15).
May want to see that answer in writing from ATT and not the message board.
IRS publishes the rates once a month usually on or about the 15th if you want to track.
https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates
in 2019, some people got a letter in Aug saying that they needed to take the lump sum in Sept or they will only get the annuity. We got a nice bump on Jan 1 this year which was visible in late Dec. Hope they don't send me a letter this year as this next bump will be very sweet. I will be age 63 by then and will put it in a rollover IRA. I am not waiting until age 65 to take it.
You got time .We are in a uncharted territory so make sure you reach out to a competent finically guy/girl.
You don’t have to take it till 65 years of age. Are you stupid or just can’t read?
Was told no short term cutoff. They don't want you to take the annuity cause they'd like to get you off their liability books.
Is there any cutoff for taking the lump Doeseem to recall people surplussed in the past saying they had to take the lump sum by a certain date or you would lose that option and have to take the annuity. I would also prefer to wait for this year’s interest rates to be applied. Fidelity has been less than helpful when I have asked these questions.
Taxes like SS impacted?
Thanks for the quick reply, much appreciated!
I spoke to Fidelity about this timing already. Rate is adjusted based on Nov Rate published 11/15. So the timing is - submit your lump sum request in December and get a payout in January.