And can you put in 401k or Ira? If Ira what kind
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Both PPA and RBA can be rolled into IBM 401k or into an IRA. You can create a rollover IRA in minutes and make it the destination. Very easy and fast.
They will harangue you about evaluating it as an "annuity" and get a really low monthly payment if you have survivorship. It may take awhile - it took me 3 months to convert my PPA as IBM sets up roadblocks as they float the cash for their own profit.
As a direct rollover it does not affect 401k or IRA contribution limits.
And yes the IBM 401k is actually quite good and cheap - being under ERISA means it is under better bankruptcy protection than IRAs. And the costs are very low.
But yeah the investments are far more limited than with an IRA. Keep the 401k but roll it over to an IRA an investment at a time as you can even buy stock with an IRA. Do this as needed. I moved some to an IRA but left the rest for now.
I want to put in 401k but will it count against the max I can put in for a year? I plan to roll it all over to new employers plan after
@e7 Once it is in 401K you don't have to keep it there. If you have no outstanding loans you can simply role the 401K over to IRA. Pre-Tax to a rollover IRA and Post-Tax to a Roth IRA. Why would anyone keep it in IBM's 401K Plan and be limited to only the investment options that IBM offers?
@fg the pathetic IBM RBA is a typical scam that you would expect from typical Indian crooks; it is why Alvind was pushing it so hard 3+ years ago. Yet another failed investment experiment for IBM employees pushed by the failing IBM management.
IBM RBA. Repulsive Broken Apathetic
The RBA fund is frankly insulting
As others have said, it could not be easier. Call Fidelity (you might get bounced around a bit as there is confusion about the RBA beinga quasi investment-pension product). Just did this last week and spoke to 8 different Fidelity people. Be very clear and tell them you know Fidelity has a team of people at IBM dedicated to THE IBM PENSION. That is the team to talk with. Also; note they will tell you and it is true it is MUCH EASIER to just have them roll it into your existing IBM 401K which hopefully you have vs rolling it into your IRA. Why? For some reason that is just a push of a button for them and once you get it in your IBM 401K as cash you can then re invest in whatever fund you want in the 401K also very easy. I have IBM 401K, IRA and Roth IRA all at Fidelity. I really like the IBM 401K as the choice of funds is the best I have ever seen andsome of the funds have the lowest ER expense ratios you can find that really eat into your returns over time. While you can initiall roll the RBA into and existing or new IRA, it is just a bit more work and time for you and Fidelity as you have to "take ownership" of the RBA disbursement and THEN roll it over and re invest in an IRA within 60 days vs the AUTOMAGIC process of RBA to IBM 401K rollover. I know I have made this sound much more confusing than it is but once you have a 10 minute talk with Fidelity you should be good to go. GOOD LUCK IT IS EASY!
@a2+1
Moving to IRA should be fine. If you want a Roth IRA, I think you'll pay tax now and have no access to withdrawals for 5 years. 401K, no -- company specific. Most get cashed (with taxes paid) or moved to IRA (non-taxable until withdrawal). Process for moving IRA or 401K to somewhere like Fidelity is easy and online.
The RBA is pitiful and pathetic
call fidelity and they will give u all the 5 options for moving the money to other pretax accounts .,. however the process for pensions is long it will take atleast 2-3 months before you see your money in other account (free float for IBM ) they designed it that way
Suggest you call up Fidelity if you have left IBM. Moving the RBA to an IRA (Rollover) is not hard to do and it is legal. It take a few weeks to process.
Not sure if you can move the RBA funds to the 401K once you have left IBM.