Happy Friday, Reddit!
I learned this week that my job was being outsourced and I would not longer be an employee of the company I've been with for 20+ years. After getting over the feelings of shock and betrayal, I'm trying to get myself back on track.
I have another job lined up making comparable pay and won't miss any checks. My wife makes good money as well, so we're going to be okay there. I am wondering what to do about my old pension. My former company had several tiers of compensation depending on hire date, and I happened to be in the last one, where they basically put little to nothing in there. I'm going to roll over my 401K into an IRA, but I'm wondering about my pension.
It's a bit shy of $40,000. If, rather than rolling it over, I took it as a lump sum, what sort of tax and penalties would I be looking at? I know in that case the company reserves 20%; what else am I looking at from the government? I'm only 41. My plan is basically to pay off a car loan and the rest of our student loans. That will get us basically debt free other than our mortgage. That way, if things don't work out in the new place, I'm in a better position if I have to take a lower paying job temporarily to maintain an income.
Thoughts and advice appreciated!
Submitted March 22, 2019 at 08:45AM by jtscribe52 https://ift.tt/2Jw04HR
