For those that have left Cigna, how long did it take them to notify the Empower or whatever retirement benefits company of your termination?
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I had a 401k loan when I left. I talked with empower and they turned it into a coupon loan I believe that’s what they called it. I received a bunch of coupons, 1 per payment, and in general I make 2 payments at a time to make it go away faster.
Empower found out almost immediately that I had left. I don't know much about 401k loans because I never do that. I also don't know if the fees change because I rolled it over to my new jobs 401k as soon as it became available (less than a month after leaving Cigna) so I never cared about it.
If you were laid off and are worried about fees roll it over into an IRA.
That’s a total joke. It’s 30-45 days. Totally, uncalled for and there may be additional delays on top of delays. They want to hold on to your money as long as they can. Good Luck!
“ If you have a loan, I would imagine you can pay it with the money you have in your account. Thats why you cant borrow more than 50% of your balance.”
Correct.
They will take taxes & penalties from your remaining balance. A $10K outstanding load could cost you another $6K if they take it from your remainder.
If you have a loan, I would imagine you can pay it with the money you have in your account. Thats why you cant borrow more than 50% of your balance.
Most of the time you will have 90 days to pay off a 401K loan. However, you can roll it into some plans which will allow you to continue making payments.
You need to talk to a financial planner rather than seek advice here, because laws & procedures differ.
Does anyone have info on how to handle an outstanding 401k loan? I have heard you can send loan payments on your own as well as if you can’t pay the balance in full after x amount if time it is reported as income?
Does anyone know if the 401k fees are significantly different for terminated employees? I can't find the info on it and want to know if I will need to rollover to another company.
Mine was pretty immediate, I don’t know exactly how long, but it was pretty quick that I was getting emails and letters from them.