Just found this site by accident and have been pouring over the messages and getting more confused as I go.
I am a novice and apologize if this question has been answered before.
I am 54 and expect to retire at 55 and will break service completely with my firm. I have a 401K and cash balance pension plan. From the boards and other websites it looks like I can withdraw from my 401K plan without any penalty hopefully that is correct. I plan to leave it with my firm and not touch it untill I am 59 1/2. I have after tax and pre-tax dollars in there.
Its my cash balance plan that I am confused about. I can take it either as a lump sum or as an annuity. I want to take it as a lump sum but need the money to live on. If I take the annuity route does the SEPPS issue come into play? If I take it as a lump sum do I have to move it to an IRA and do I have to do the SEPPS calculation even though I will be 55 and have broken service?
I am conservative and could I use the Vanguard TIPS fund for the IRA?
Thanks for you help!!
I am a novice and apologize if this question has been answered before.
I am 54 and expect to retire at 55 and will break service completely with my firm. I have a 401K and cash balance pension plan. From the boards and other websites it looks like I can withdraw from my 401K plan without any penalty hopefully that is correct. I plan to leave it with my firm and not touch it untill I am 59 1/2. I have after tax and pre-tax dollars in there.
Its my cash balance plan that I am confused about. I can take it either as a lump sum or as an annuity. I want to take it as a lump sum but need the money to live on. If I take the annuity route does the SEPPS issue come into play? If I take it as a lump sum do I have to move it to an IRA and do I have to do the SEPPS calculation even though I will be 55 and have broken service?
I am conservative and could I use the Vanguard TIPS fund for the IRA?
Thanks for you help!!