During the severance period, does one have access to rollover from Cash balance plan to an IRA? What if displacement status is 'Retired'?
5 replies (most recent on top)
@c6 Empower doesn't manage the Cash Balance Plan.
@d9
Nobody said they do...
Empower doesn't manage the Cash Balance plan.
Yes, you can roll-over your cash balance plan. As long as you roll-over 100% there is no penalty. It is what I did.
If you are >55, look-into Rule of 55 if any $$ concerns. It allows those 55 and older who are unemployed -choice or forced- to withdraw retirement funds without penalties. (Funds must be from plan of employer when you became unemployed) You will still have to pay taxes on any pre-tax funds, not on post-tax, such as Roth. You would still have to pay state taxes, unless you live in a state such as Iowa, which does not tax retirement funds. (and also has special allowances for those >55)
I took a job I knew I could do but at a 24% pay cut. I left a chunk of $$ in my WF plan and now use it to pay my mortgage and car payment. Rolled the rest, incl Cash Balance, into a very nice IRA at Empower, which came with free CFP services.
Empower should send you an email giving you some options. If not, give them a call and they will help you through this.