Thread regarding AT&T layoffs

The solution for the Irs rule of 55 for those younger than 55 is simple, while yes it’s true you can’t get to the money until the year you turn 55 you can simply role the AT&T 401k plan into your new jobs participating 401k then leave that job the year you turn 55. Research it. Also, if you need the money before the age 55 research the irs 72t rule.

"...the irs rule of 55 if you are below the age of 59.5, this will allow you to access the money the year you turn 55"

This is why you should not get advice from these boards.

You must leave your job the calendar year you turn 55 or later. The rule of 55 doesn't apply if you left your job at, say, age 53. You can't start taking distributions from your 401(k) and avoid the early withdrawal penalty once you reach 55 in that case. However, you can apply the IRS rule of 55 if you're older and leave your job.

I took the lump sum when I retired at age 53 and rolled it into my 401k ( change your 401k investment direction before the rollover so it shows as cash in the account). I opened the fidelity brokerage link account that allows you to purchase funds outside of the AT&T investment options. Get with your advisor and choose good quality mutual or index funds. Familiarize yourself with the irs rule of 55 if you are below the age of 59.5, this will allow you to access the money the year you turn 55. If above 59.5 you can open iras if you choose. Hope this helps, do a lot of research and speak with fidelity and other financial advisors for help.

Listen up…..

*There isn’t a financial advisor out there that would recommend monthly pension. They get ~1% to manage your money. You are essentially their annuity.

• Depends on your tolerance for market fluctuations. Your account will move up and down thousands of dollars a day. Can you stomach that?

• How will you use the money? Do you need that lump sum immediately to survive?

• Do the math. 4% of portfolio withdrawal in year one, then adjust that figure by inflation every year thereafter.

Supposed to last 30 years with a portfolio of 50/50 to 80/20 stocks to bonds.

Don’t forget the 1% to advisor plus the fund fees. It really ads up.

Monthly pension and social security gives you a monthly floor. 401k can be invested for long term grow. With a decent floor and no debt you can spend spend spend it will be replenished every month.

Should have retired last year. You lost a lot of lump sum retiring after 11/30/22. I would have lost 30% if I didn’t. roll over and food to go.

If you want guaranteed income there are better annuity products available. I was able to use 2/3 of my lump sum payout to get an annuity that generates more monthly income & has inflation protection.

A friend who worked for T recently retired with a pension. He took a lump sum and rolled it over to an IRA - find a great financial advisor you trust to handle this for you.

Incidentally, T recently sold the annuity pensions of over 90K retirees to a company named Athene. Effective August 2023 this new company will own and manage those said pensions. Many impacted retirees are concerned about Athene going bankrupt and/or mishandling their pensions. So while not all pensions were sold ( T retained a good portion), you never know what is planned for the future. So just like that T wiped their hands clean of 90K some odd retirees. 🤔

Weird place to ask that, but even putting Stank aside, most financial experts that I tend to trust advise that you always take that in a lump sum if you have the option, and do a direct transfer rollover into an IRA or into your 401K.

Lump sum, 100%. For all of the reasons already mentioned. Bottom line: do you really want to continue to entrust AT&T with your money versus you having control?

Don't trust the Stink with anything!

Take the lump and buy annuities if you want a fixed monthly payment. Besides, you can get more from an annuity than from Toxic-T pension.

"For those who haven't reached MR75 and who can't tap into lump sum money anyway - would it make sense to leave the money in Fidelity until interest rates come down and the lump would be larger? Then roll that larger lump sump into an annuity?"

You can still take it if you haven't reached MR75, you'll just be hit with an age penalty so you'll get less. As for leaving it, look at what has already been done with the pension and the current state of affairs. Do you feel comfortable leaving it there?

So it appears I’m not the only one who is afraid to leave my pension sitting here when I go. I don’t trust it will be there years from now if T has any way to sc--w us over in that regard as well. Hope Stankey enjoys his golden parachute.

For those who haven't reached MR75 and who can't tap into lump sum money anyway - would it make sense to leave the money in Fidelity until interest rates come down and the lump would be larger? Then roll that larger lump sump into an annuity?

S&P 500 index fund is up 30% in last three years. You must be crazy to leave money in annuity with inflation rates the way they are. Take the lump and disconnect from this dark place.

As many have said… talk with Fidelity… but… i will tell you… i plan on taking my money… I don’t trust Stankey. I don’t trust Santone. I don’t trust the board. I will cut all ties… no more directv, cellular, etc. this place is toxic and all it touches gets infected…

Take the lump sum and buy bitcoins. Get rich beyond your dreams.

"Speaking of, when did they stop offering a pension?"

Pension accruals stopped for anyone "hired or rehired after Jan. 1, 2015 (Jan. 1, 2016, for legacy DIRECTV)" according to "AT&T New Hire Benefits Guide | Management | January 2017" (find it on tsearch)

In exchange, corporate matching in AT&T stock increased from 80 to 100% of up to 6% of salary deposited to 401K as shares in AT&T stock (actually a fund fully invested in AT&T shares).

As we all know, under current executive leadership AT&T h̶a̶s̶ ̶g̶r̶o̶w̶n̶ ̶t̶h̶e̶ ̶s̶t̶o̶c̶k̶ ̶v̶a̶l̶u̶e̶ ̶a̶t̶ ̶n̶e̶a̶r̶l̶y̶ ̶t̶h̶e̶ ̶s̶a̶m̶e̶ ̶r̶a̶t̶e̶ ̶a̶s̶ ̶t̶h̶e̶ ̶S̶&̶P̶ ̶5̶0̶0̶ oops, my bad: these guys actually drove the price down by 50% since they took over the merged company in 2006.

PS: I'd take the lump sum as a rollover. Do you trust these guys not to tamper with your pension in 5 or 10 years? I sure don't and if the pension is underfunded, I wouldn't trust a bankruptcy judge, either.

Speaking of, when did they stop offering a pension?

I’m assuming you're talking pension? If so I took the lump Sum. It was no comparison for the annunity, seemed like to me they are just giving you the interest on your money and keeping the balance for themselves. It wasn’t even close to a comparison. I guess the only way the annuity would win would be if you didn’t save/invest the lump sum to get the free interest from it, and you just blew the money instead

Like the Steve Miller Band sang…”Take the Money & Run”.

As we have Fidelity managing our 401Ks -you can have a free consultation with a Fidelity advisor to review your investments-it will be fairly basic-not like the personal financial planners that the AVPs & C-Suite get as part of their perks, however the Fidelity agent can review your pension and distribution options as part of this consultation, and possibly provide some insight, or points for you to consider. Good Luck

Take the cash and run

Start with reading something like this:
https://files.consumerfinance.gov/f/201601_cfpb_pension-lump-sum-payouts-and-your-retirement-security.pdf

Much depends on your age, how much you have in there, and too many factors that are based on individual to be a one size fits all. I would discuss it with a financial advisor and not the opinions of strangers, some of whom may not have your best interest at heart.

Take the lump sum!!!! That is guaranteed and you can roll it over to an IRA.
I don't know why anyone would take an annuity.
Educate yourself on this topic.