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How much time to give Pension & 401k admins to get your money?
Old 06-11-2014, 10:31 PM   #1
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How much time to give Pension & 401k admins to get your money?

Well - more deep thoughts while planning my transition to FIRE....

How much lead time should I plan on giving my Megacorp Plan Adminstrators for my 401k and Pension Plans to process my requests to begin receiving payments?

I'm trying to plan out how much I need to have saved in checking/savings and how much to sell off from my after tax holdings between the time I actually give notice and when the monthly pension and 401k payments will start arriving.

Any warnings or tips to make sure I don't run into long delays?
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Old 06-11-2014, 11:37 PM   #2
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It was 2-3 months for me from megacorp, before the pension lump-sum was available. I never lost access to the 401k account, it was available for me whenever to just leave it there, or roll it over, I rolled it when I was ready.
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Old 06-12-2014, 09:05 AM   #3
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From "Uncle Sam" there was a 30 day minimum wait from retirement until I could even request my deferred compensation (TSP – like a 401k) could be rolled out, then it took them almost three months to actually send the money. It took uncle six months to get the pension "right", in that interim sending a check that was around 1/3 of what it was supposed to be.
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Old 06-12-2014, 09:09 AM   #4
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Quote:
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How much lead time should I plan on giving my Megacorp Plan Adminstrators for my 401k and Pension Plans to process my requests to begin receiving payments?
Have you asked them?
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Old 06-12-2014, 09:23 AM   #5
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Check your plan documents. My pension says to sign up 90 days in advance of when the payments should start. My 401k documents says they will mail a check within 5 days of the redemption request.
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Old 06-12-2014, 10:26 AM   #6
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DW's pension docs say to apply 90 days before you want the monthly payments. I'll worry about the 401k next year.
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Old 06-12-2014, 10:31 AM   #7
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My pension plan provider said at least 45 days, but no more than 180.

The 401k plan provider said just 7 days.
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Old 06-12-2014, 11:23 AM   #8
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Originally Posted by unno2002 View Post
From "Uncle Sam" there was a 30 day minimum wait from retirement until I could even request my deferred compensation (TSP like a 401k) could be rolled out, then it took them almost three months to actually send the money. It took uncle six months to get the pension "right", in that interim sending a check that was around 1/3 of what it was supposed to be.
I am a federal retiree also.
I retired on 11/9/2009.
I requested equal monthly payments from the TSP on 1/5/2010.
My first TSP deposit arrived at my bank on 1/26/2010.

So, it took almost three months for me as well.
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Old 06-12-2014, 11:52 AM   #9
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When I ERed back in late 2008, I had to liquidate my 401k because I had elected to use NUA for cashing out the large company stock portion of it. I faxed several pages to the 401k administrator including special instructions about how to process the various parts of the account. Some of it was going to be sent electronically to my local bank's checking account while most of the non-stock money was going to a rollover IRA but mailed to me in a check (made out to Fidelity, not me, of course). The electronic stuff went through in just under a week while the check arrived a day or two later. Everything was done the way I requested. A week later, I went to my local Fidelity office to set up the IRA and the bond fund whose dividends I am living off.
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Old 06-12-2014, 06:22 PM   #10
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Megacorp used to take several months. Now if they receive the request by the 15th, the money is sent on the 30th. I'd check with your benefits department if possible.
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Old 06-12-2014, 09:59 PM   #11
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My company said to give at least 60 days notice, which I did. Pension checks started the first month I retired.

It is going to be company dependent but I expect the more time the better. I would ask your company what notice they require.
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Old 06-13-2014, 09:02 AM   #12
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I got my lump sum settlement from megacorp in less than 30 days once I retired. I'm not sure how long it will take to get my 401k funds since I haven't touched that yet.
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Old 06-13-2014, 09:32 AM   #13
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My pension plan took five months, and that is about the bare minimum time frame.

It was something like you have to wait 3 months after termination date to request a lump sum rollover. Then they have 30 business days to mail you a physical check "for benefit of" your IRA custodian. So you get the check and stick it in the mail to Vanguard or wherever.

My termination date was Aug 26 and I recall the deposit showed up at Vanguard Jan 21 and I timed everything to expedite as much as possible (short of sending Fedex Same Day service).

That was with a large clunky state retirement system that's not known for being particularly competent. FWIW.

401k rollover from Prudential was very quick - maybe a few days. They did it all electronically.
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Old 06-13-2014, 10:55 PM   #14
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I initiated my pension lump sum paperwork about 45 days before my off roll date. The lump sum arrived in my rollover IRA account about 45 days after my off roll date. I think they ended up mailing a paper check to Vanguard, but at least I never had to touch it.

My Fidelity 401k rollover was quick. I spent about an hour on the phone with a Fidelity rep, and the money was in a new Fidelity IRA account the next day (the rep told me it would take 2 or 3 days).
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Old 06-14-2014, 08:33 AM   #15
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Well - I will be leaving my 401k where it is since I will be FIRE before 59 1/2 but separating from service after 55. So per the Plan and IRS regs, I can withdraw from my 401k w/o penalties, but only if I leave the 401k where it is and not roll it over into an IRA.

I'll do that later, maybe - it actually has good choices and the fees are pooled so they are acceptably low.
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