Anyone know what happens to 401k if you get laid off at lets say 52 or 53 years old.
I know traditionally you can rollover 401k to an IRA. But since tiaa has life time income would it make sense to keep money with tiaa and start getting paid at 59.5 or is it better to rollover.
Not laid off... Yet. But just curious.
4 replies (most recent on top)
Your voluntary contributions and matching, the 401k, will be available barring any investment liquidity restrictions. Your TIAA Retirement Plan, which is all TIAA contributions, will be restricted to a timed payout.
Does the severance plan get paid out in a lump sum?? Does the LTTP vest immediately?
The original post specifically asked about the 401k, which is not an RA. Also, the RA is not "subject to a 3% annual withdrawal". More like 7%
There’s no right or wrong answer but note the RA is not cashable and subject to 3% annual withdrawal after separation.
You are also a TIAA client and recommend you call the NCC and request an advice session. You should ask for income options and illustration that would show what your income payments may look like.