Thread regarding IBM layoffs

My IBM pension is coming upon its commencement date as I'll be turning 65 soon. I'm still working, though not with IBM (released over 10 years ago) and so I'm looking to defer the taxes and do a roll over. I have the old IBM pension plan, a 401K and Roth IRA with Fidelity. I'm scheduled to meet with a Fidelity Net Benefits rep, but I'm also looking for a certified retirement or financial planner without a vested interest who ideally is also familiar with the IBM Pension plan - preferably someone local, but not necessary. I live in the mid-Hudson region of New York. I'd appreciate any suggestions. Thanks.

Roll it over to an IRA that you can control. I put mine into a high growth Fidelity IRA. I do not have to pay taxes as long as it is a rollover. The amount was small enough that I was willing to put higher risk on it than my primary 401k. I also pulled my 401k and rolled it over as well. It is still with Fidelity, but I have more say on it now. Hth

FWIW - I'm in a similar situation, i.e., undecided about when to start collecting SS and pulling my personal pension. So I spoke to Fidelity NetBenefits this week about my personal pension. Was hired in '96 and RA'd class of 2020. I learned that the personal pension will only accrue (earn) interest until I turn 65, then interest stops. Before I turn 65 I can elect to rollover to a self directed IRA, take a lump sum (pay all taxes) or start payouts at the options in the plan. Once I turn 65 it automatically becomes a Single Life Annuity and bc I'm married, it pays 50% to me and will / would pay 50% to my spouse if she survivors me. Let me repeat that, the personal pension will automatically start disbursements when I turn 65 and I have NO say in the matter. Here's the exact wording: "Please remember that the Plan requires you to commence all of your pension benefits no later than your 65th birthday."

Suggest you reach out to the other side of Fidelity and discuss investment options with the money. (I'm assuming your 401K funds are still with Fidelity.) Naturally you can talk to Vanguard or anyone else, CFP, other and get their suggestions on investment options and income from this amount and 401K.

Have you directly reached out to SS with your question?

Does anyone have any insight into which company(s) will be responsible for our pension obligations? Will it be IBM? Are they allowed to offload it to Kindryl? Will it be divided?

take the annuity on your 25000 ,should be around 160 a month for life and your SS ,If you can live off that save your 401 k for ladder years. You have a real tight budget GL

I have about 350k in 401.
The reason I want to withdraw money from personal pension plan is :

Does not allow lump sum withdrawal after 65 years old.

I will be getting $1600/month from social security and planning to work part time and take care of 87 years parents. can’t wait till 67 (4 more years). I should know spend my time taking care of my parents.

Word is , if you can wait for SS until full age , is what advisors normally recommend.Of course it depends on your health and if you could actually live off alternate income .What about your 401k ?You did not save in that ?

If you are talking of 25K total IBM pension I'd take the money , pay the taxes, pay off some bills and have a party.
If you are talking 25K a year, I agree with talking to an advisor.

I started running the numbers a long time before I retired. I took SS, IBM pension, and started 401K withdrawal all at age 62.

Best possible advice: Do not take financial advice from random people on the internet.

Second best possible advice: Taking money out is a lot more complicated than putting money in, as I learned when I started this process (at the beginning of 2021). Where you take the money from and when you take it can make a dramatic difference, it turns out. It affects not only tax, but also things like minimizing your healthcare cost through the Exchange (once your COBRA or other benefits run out and before Medicare kicks in).

Talk to an independent financial planner/wealth advisor. "Independent" meaning (1) a fiduciary (in the US; TWIAVBP) and (2) does not work on sales commission

Actually, talk to several advisors. The actual advice may not vary much, but IMO it's important to find somebody that you feel comfortable with. (I talked to six before picking one; there was one I absolutely hated on first contact...). Anybody worth working with will do an intro 30/60 minute call for free.

Final note: I went into the process thinking "I just need a couple of hours of somebody's time to create a plan, and I'll pay reasonably for that, but I don't need to be paying somebody a %age to manage my money"; and came out the other end thinking "I need an ongoing relationship with somebody who will respond to changes in tax law, benefits, other circumstances and I'm willing to pay for that".

https://www.kiplinger.com/article/retirement/t051-c032-s014-how-to-calculate-social-security-break-even-age.html

@phf - remember if your receiving SS and not FRA, then your very limited on how much you can earn. If you earn more than the SS limits they will reduce your SS.

More info if helps .

I am planning to receive social security benefits by end of November and work part time job and take care of family .

My suggestion would be to talk to a CFP. You do not give a lot of information, nor should you here, that would allow anyone to give you a good answer. It all depends on your needs.

Good Luck.