Thread regarding General Electric Co. layoffs

Cash out and then reinvest the money into a Traditonal IRA and THEN convert it to a Roth IRA immediately afterwards (paying the taxes upfront) and then use that Roth IRA money when you need to whenever with no tax when withdrawn.

Both PPA and VPA have employee contributions (which were taken out after-tax), and interest earned (untaxed) portions. For example, my account is about $100K and approximately 2/3's is pre-tax and the remaining 1/3 (the interest part) has not been taxed. So, I believe when I cash-out I will only be paying tax on about $33K.

its confusing but you put money in after tax and when you receive it it is 100% taxable. ge then makes a miniscule amount of your pension non taxable to pay you back your share. somehow when you die if you didnt receive your full amount there is some kind of credit to your last 1040 you file. so live to 95yrs old or die in sept or later. i rolled mine over to an ira. but when i withdrawal it is 100% taxable. good luck.

It is a personal choice. I will cash out and take it pay the taxes and control my money. No govt. interference. You only pay tax on the gain , not post tax contributions. Don’t put into pension as you may lose it in years to come. You can not leave it to heirs

In terms of the PPA/VPA plan you have 3 options: 1 withdraw the funds which there will be a 20 percent federal income tax deduction, 2 roll over the funds to a traditional or Roth IRA, 3 commence an early monthly lifetime benefit. You have to take action to the funds by age 70.5 IRS regulations, if you defer the funds it will gain interest.

Can existing employees cash out of their VPA/PPA ?

Basically only two practical choices - Leave it in GE (pension is guarantied up to a certain limit by PGB) or roll it over to a IRA (may provide better return and of course comes with risk based on how you invest). Annuity with other companies is if you want to ensure losing upfront money which in my opinion no one should ever consider.

ever heard of the Pensions Guaranty Board?? and you personal amount is just that ... yours

Don't buy any outside annuity - very high upfront commissions.

Just move to IRA & invest. If you die early at least your beneficiary will get what's left, unlike annuity.

"Too many cynical responses with no good advice."

It's amazing to see people who've spread their sh-- around their whole life, blamed everyone else for the reaction and now have not one left to talk to so come here. What a sad miserable existence.

GE is not dead. Check who runs your pension, GE pensions are run by third parties with GE oversight in some countries.

I retired from GE last year and faced the same question. I looked into what monthly income I could get from buying an outside annuity using the lump sum amount, and compared that to what I would get from GE as an additional pension amount if I left it in. I also discussed this with my financial adviser (from Fidelity) who was familiar with the question from dealing with other GE clients. At the time, there wasn't an outside annuity that would pay close to what the additional pension amount was (with rising interest rates that might not be the case now, I don't know). My adviser told me most of her clients left it in and took it as an additional pension amount for this reason. I worried (and still do to some degree) about the risk of GE defaulting on the pension but I have other resources (401K and other savings and investments) so I decided I could afford to take the risk, and left it in. I have two other colleagues who retired recently, After consulting with their financial advisers, one left it in and the other took it out and put it in a 401K. So I don't think there is one right answer, it depends on your financial situation, view of GE's future, and risk tolerance. The suggestion of @1qlc to talk to a qualified financial adviser is a good one.

I would suggest going to a financial adviser and ignore responses from this board. Too many cynical responses with no good advice.

My wife had a similar option for her retirement fund (non GE company) and we moved it to an IRA. May be the right move for you but see someone with professional credentials.

Cash out.

Cash it out while GE has money.

Great questions, I’m in the same boat, interested in replies of those that have taken action