Does the irs rule of 55 apply to your pension as well as 401k? If not, any way you can take distributions from your pension at 55?
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If you are 55 or older roll your lump into your 401k ... you can also roll IRAs into an AT&T 401k they allow it so you can get to everything early that way.
People....please do not seek financial advice from this message board.
Consult with a financial advisor/fidelity for your specific situation.
Holy s h i t.
"When I retired from AT&T, Fidelity showed me how it was better to rollover my 401K to an IRA."
Good advice if you are age 59.5 or higher. Beware, though, if you are age 55-59.5, there will be a penalty if you take a withdrawal from the IRA, which can be avoided if you leave some money in the 401k and take your withdrawals from there.
When I retired from AT&T, Fidelity showed me how it was better to rollover my 401K to an IRA. The ATT 401K has very limited investment choices where the IRA had thousands giving you more opportunity to have better earnings potential.
There is another option called a 72T that allows you to take penalty free withdrawals before 59 1/2 please consult your CPA & CFP for the rules. I have a coworker that used this after retiring from AT&T craft at age 53
Clarification to my previous post @1mfw+1dalKMSa: Actually, you can take your pension when you separate from the company, even at age 55 (its is not called Rule of 55, though). If you are taking the monthly payment, you should be OK, but if you are taking the lump sum, there may be penalties.
As always, call Fidelity for the correct information applicable to your pension plan (there are many).
Rule of 55 applies only to 401k, not pension, not IRA.
Roll your pension lump sum into your 401k and then take Rule of 55 distributions from the 401k. Call Fidelity several weeks before your off payroll date to get this rollover started, as it can take some time.
Put the pension $ into the 401k
401K like 10 choices for investing IRA around 35000 choices to invest get an advisor and get moving
Not true. You can roll a pension lump sum into either a 401K or IRA. You can keep the 401K and avoid penalties if you are 55 or older when you leave the employer. At any point later (perhaps after 59 1/2) you can roll the 401K into an IRA. Talk to Fidelity.
https://www.rocketdollar.com/blog/rules-for-rolling-over-pension-to-an-ira-
According to IRS publication 575, if faced with a lump-sum distribution, you are able to roll over into a Traditional IRA or 401(k) and face no tax or early withdrawal penalty. For most people, this will be the most attractive option, as the income taxes and early withdrawal fees on a lump-sum distribution will be significant, and not be an option for most people.
The rule only applies to your 401k. You can take your pension now if you want - annuity payments. If you take your pension as a lump sum - most likely you would roll it over to an IRA. Rule of 55 does not allow you to withdraw from IRA - you have to wait until 59 1/2. The younger you are, the better it is to take the lump sum.
You can only flip both into an IRA to avoid penalty. Need to be 59 1/2 years old.