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Old 09-01-2007, 03:32 PM   #21
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When I left MegaCorp, I was undecided about rolling over my 401(k) into an IRA until I got a letter from MegaCorp shortly after I left telling me that my menu of choices for investments was being cut to, IIRC, something like five or ten options -- rather than the essentially unlimited number of stocks, etc. that I had as an employee. That made my decision to move to Vanguard very easy!
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Old 09-01-2007, 04:05 PM   #22
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If you are a federal worker under the FERS system, rolling the 401K into other IRA accounts would not be beneficial until you reach the age of 59 1/2. For me, I can begin getting 401 payments, (TSP), immediately when I reach retirement age...at age 56. When I reach 59 1/2, it would certainly be a viable option. I'm a fan of Vanguard. Some of you are in the same boat? Corrrrect me if I am wrong... First post...howdy you guys...and gals!
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Old 09-01-2007, 04:44 PM   #23
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Welcome Redbugdave! With a moniker like that it almost sounds as though you came from Texas. You ever live in Texas?

Off topic, but I think we definitely need some Texas smilies on this forum. We need smilies fighting varmints, smilies lining up their guns to shoot them or somebody or something, oh I can just think of all kinds of smilies that would be used.

Oh well, Redbug welcome again, and make yourself at home.

TG
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Old 09-01-2007, 04:50 PM   #24
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Off topic, but I think we definitely need some Texas smilies on this forum. We need smilies fighting varmints, smilies lining up their guns to shoot them or somebody or something, oh I can just think of all kinds of smilies that would be used.
You mean something like this?


...and this?
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Old 09-01-2007, 04:57 PM   #25
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Oh yes, yes, yes, yes!!! Perfect!

Just seems like we need some powerful smilies in order to properly illustrate what we have to deal with in Texas. Also, those really demo my mood too!
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Old 09-01-2007, 05:44 PM   #26
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No, I have never lived in Texas. However, I live in rural SC and it is much the same. It's the best lifestyle in the country...where things are slow and people still wave from the road.
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Old 09-01-2007, 06:13 PM   #27
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We all wave in my little town in East Texas, but the problem is that you can never tell if someone is waving away bugs, wasps, mosquitos and grasshoppers or if they are waving at you. Even in the car . . . leave a window cracked when you go in a store (just 1/2" will do it), and all of the waving starts as soon as you go down the road a bit because the car has at least 5 insects with wings that you didn't see when you first got in. I hope SC doesn't have as many bugs and varmints as we have in Texas.
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Old 09-01-2007, 07:19 PM   #28
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Insects, humidity, hot temperature in Texas -- that must be the reason that cost of housing is so affordable there?
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Old 09-01-2007, 07:38 PM   #29
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Insects, humidity, hot temperature in Texas -- that must be the reason that cost of housing is so affordable there?
Yeah, that...plus the fact the place is filled with Texans.
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Old 09-01-2007, 10:08 PM   #30
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We all wave in my little town in East Texas, but the problem is that you can never tell if someone is waving away bugs, wasps, mosquitos and grasshoppers or if they are waving at you. Even in the car . . . leave a window cracked when you go in a store (just 1/2" will do it), and all of the waving starts as soon as you go down the road a bit because the car has at least 5 insects with wings that you didn't see when you first got in. I hope SC doesn't have as many bugs and varmints as we have in Texas.
Yep. We have to make sure the car windows are closed tight unless we want a lot of little critters in the car the next time we get in it -- right now, mostly crickets and grasshoppers. Those things are everywhere. The bugs are terrible this year with all the rain we've had. Last year wasn't bad because of the drought, but this year...oy.

So you either leave the windows all the way closed and get into a sauna if it's been out in the sun, or leave them open and get distracted by little vermin all over the car.
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Old 09-02-2007, 07:57 AM   #31
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It's pretty buggy and snakey down here, too. But with the drought the bugs aren't as bad, lately. Lotsa redbugs, though. Scratchin's fun...

About the IRA question...a person could switch the 401 to IRA, then start taking equal distributions before age 59 1/2 without penality? Is that right?
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Old 09-02-2007, 08:14 AM   #32
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About the IRA question...a person could switch the 401 to IRA, then start taking equal distributions before age 59 1/2 without penality? Is that right?

Yep. Google "72t" and you'll find all sorts of info on SEPP programs, like this: Rules Regarding Substantially Equal Periodic Payment (SEPP)
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Old 09-02-2007, 09:11 AM   #33
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My 401k allows the distribution when you retire at 55 thingy, but no partial distributions, which makes it pretty much worthless. However, the in-house funds are cheap, and there's a self-directed broker option. Still, I'll probably rollover to VG.
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Old 09-02-2007, 07:05 PM   #34
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With my govt TSP, which is alot like a 401k, I'll be able to take a one-time lump sum amount if I choose at 55 when I retire, and then equal monthly withdrawals, which can be adjusted just once a year. So...the check's coming every month whether I want it to or not. At least that's my understanding. I'd really like to just keep my money in the TSP after I retire, since the cost is currently .03. I don't know about having such limitations on withdrawal, though. Say in January I set things up to withdraw $1000 per month for that whole year, then I want to withdraw an extra $5000 in say...July for a cool vacation, or a new roof or whatever, I can't take it from the TSP account. Likewise, if the market tanks and I want to hold off on withdrawals or reduce them for awhile, I don't think I can do that either. The fees for having my money in the TSP are very low, and I expect that's got a lot to do with the lack of options available. For these reasons, I'll probably end up rolling my TSP funds into an IRA after I retire in 5 years. Unless they loosen up the withdrawal options a little bit.
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Old 09-03-2007, 07:28 AM   #35
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Thanks REWahoo...I appreciate the link...72t, SEPP...that is an interesting link with some good information. More information to ponder on a slow day at work...

Hi MartyB,
I'm in the same boat...but 6 years to go for me. I've been maxing out my contributions into the TSP, and it's grown substantially. With you being 50 or so, you can contribute even more...with catch-up contributions. I will do that when I hit 50.

All my IRA accounts with VG are Roth, (converted over years ago and paid the tax). If you did convert your TSP to IRA 5 years after retiring, (60 or so), I would suppose it would have to be a traditional IRA...to much tax to have to pay for Roth conversion?? Another item to ponder...and run the numbers on... I am not sure...
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Old 09-03-2007, 08:02 AM   #36
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Hey Dave!

Actually, I fudged just a little. I won't be 50 until January, so I have 5 yrs, 4 months still to go, but I prefer to round down lol! I do now max my TSP contributions, but I only recently was able to get it up to the max. I've been near the max for awhile, but not quite there. Starting next year, I will definitely find a way to contribute the additional $5000.

I'm a CSRS employee, not FERS and don't get any matching funds. Also, I haven't contributed for my whole career so therefore I'm not gonna have nearly as much money in my account as I'd like. However, I'm determined to max out for the rest of my working time and hope for better days in the stock market. I'm currently 100% in the L2040, although I did make some good gains going heavier into the I Fund a little while back.

My main retirement funding will come from my CSRS pension, my Air Force Reserve pension which will kick in at 60, and whatever I can draw at 4% from my TSP account, if needed. Also, my wife will continue to work for 3 yrs after I retire, till she turns 55, at which time her 401k will be available. She will have SS at age 62. I qualify for SS also, but since I fall under the WEP it will be maybe $200, or so.

Where bouts in SC are you? I'm from Rockingham,NC, living in Louisiana these days.
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Old 09-03-2007, 08:33 AM   #37
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I have kept money in one 401(k) because it offers a good fund that is otherwise closed to me.
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Old 09-03-2007, 05:12 PM   #38
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I have not moved my 401k to ira (yet). My 401k has better ER than VG. It has 'proprietary' (not sure that's the right term) funds that mirror the major indices. More than enough choices. It also has a window out to VG, Fidelity and some others. So I think I have the best of all worlds. :confused:

I believe that there is an inheritance reason for moving from 401k to IRA. Which would be the only reason to move them.
QUESTION: Does anyone know the specifics?
Thanks.
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Old 09-03-2007, 05:40 PM   #39
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Martyb...I live just south of Columbia. I am also going to hit the big 50...in late December. We are pretty much the same ages. My MRA is 56 years under the FERS plan, and will have 33 years total time in by then, (I bought my military time way back when). The house has been paid off for several years...and my wife and I have been investing and living fairly simply. Mainly saving to buy some acreage, (out in the boonies), in the lower part of the state and moving down there when the magic time comes. Good hunting, fishing, and lotsa snakes!

Rockingham is a great area, also. I go up to Cheraw now and again to see friends, (just south of Rockingham). That area is growing and changing, though. A lot of furners moving in...some talk funny, (jersey) and some migrating from florida...

MegaCorp...Good question about inheritance...
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Old 09-03-2007, 08:20 PM   #40
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Martyb...I live just south of Columbia. I am also going to hit the big 50...in late December. We are pretty much the same ages. My MRA is 56 years under the FERS plan, and will have 33 years total time in by then, (I bought my military time way back when). The house has been paid off for several years...and my wife and I have been investing and living fairly simply. Mainly saving to buy some acreage, (out in the boonies), in the lower part of the state and moving down there when the magic time comes. Good hunting, fishing, and lotsa snakes!

Rockingham is a great area, also. I go up to Cheraw now and again to see friends, (just south of Rockingham). That area is growing and changing, though. A lot of furners moving in...some talk funny, (jersey) and some migrating from florida...

MegaCorp...Good question about inheritance...

When I go to Rockingham (like I did last week), I take I-20 through Columbia to Camden, then catch US 1 north. There's a good place to eat in Cheraw called River's Edge. It's downtown in an old building, not sure if that's Main Street or not. Spent lots of time down that way, and also a good deal of my youth in the Myrtle Beach area. Too bad about the Pavilion. I'm sure glad I was able to take my kids there a few times when they were younger. They remember it being a great place.

If you like fishing, bugs, snakes etc. then you'd REALLY love it here in Louisiana! I think this is the headquarters for all that stuff. The fishing is outta sight! As for the foreigners, you got that right. Up in Richmond County, NC, a whole lot of them don't habla English or have driver's licenses. P.S. When I hit 55 in 01/2013 I'll have right at 36 yrs total. Funny you should mention the military time buy-back...I'm mailing in my check for $8,263.00 tomorrow! Ouch. Take care.

Marty
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