Join Early Retirement Today
Thread Tools Search this Thread Display Modes
First Megacorp opened an IRA for me...
Old 03-24-2015, 12:49 PM   #1
ziggy29's Avatar
Join Date: Oct 2005
Location: Texas
Posts: 15,419
First Megacorp opened an IRA for me...

At the end of 2014, I got a call from Megacorp #1's Retiree Service Center telling me of a mistake they made. I have a small pension with them, actually two pensions based on different job functions I had there over the 12+ years I worked there. One of them was for about 9 months of service and had a cash value of less than $5,000... and they were electing to forcibly cash me out of that plan, which they can legally do when the cash value is under $5K. (They also offered me a lump sum buyout of the larger component, which they can not close out without my approval. At least for now, I declined that offer.)

They said their mistake was actually sending us checks, with taxes withheld, directly payable to us without giving us a chance to rollover to avoid taxes and penalties. They stopped payment on that check and said they'd have more details soon about our options for the distribution.

Well, almost three months passed and I heard nothing. I just thought about it this morning so I called the Service Center back asking for an update. They said they had instead transferred all of the assets for the cashed-out individuals to Citibank to be held so we can open an IRA there. (I didn't know they could do this.) So then I had to call Citi and get the details on what I need to do to set up an actual IRA account and have my balance deposited into it. So then I printed out the application and dealt with hoops to establish identity, mailed it in, and in a few days I should have an account which I can then immediately close and transfer into my Schwab IRA.

Would have been much nice had they just given me the option to receive a check payable to Schwab "for my benefit" which I could just mail into Schwab, but I guess it's better than just sending is a check and dealing with the taxes and penalties.

Has anyone out there ever had something like this happen to them?
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Just opened a Roth IRA :) Opinion on two target date funds in an IRA? Effect FIRE and Money 3 05-12-2008 08:05 AM
I just opened an account at Vanguard and have a question!? VaCollector FIRE and Money 9 05-19-2007 08:15 AM
I did it! Opened A Vanguard Acct. Outtahere FIRE and Money 10 01-04-2007 03:49 PM
Opened First Vanguard Account........... FinanceDude FIRE and Money 1 11-06-2006 09:40 AM
Has onyone opened an account with EmigrantDirect y KB FIRE and Money 8 01-31-2005 04:21 PM


All times are GMT -6. The time now is 02:54 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.