I've heard people say that they somehow draw all of their severance when they are laid off and then they take the lump sum pension so they can maximize their pension payout. Does a Legacy T employee severance payout happen in one lump amount or 6 monthly payments? I see where I would get about $30k more in lump sum pension if I could wait 6 months to take it. Is that possible? Does anyone know how long you have after the last date on payroll to take a lump sum pension and roll it over to a traditional IRA? Is there a deadline or would you be stuck with it in AT&T if not taking it until ? Thanks
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If you are over 65 you have to take an immediate withdraw. If you are younger you can delay payment
No deadline to take the lump sum. However, some people were told in Sept 2019 that they had to take it that month or lose it. We may get similar letter this year. The 2020 rates are great. Take it before December. Else hope the 2021 rates are as good or better.
Lots of variables. If you are an old timer legacy SBC, you may not have the option of pension lump sum payout unless company makes an offer. You must be a participant in Cash Value pension. It is indicated on Fidelity how you can take it. However once you are off the payroll, you can log to Fidelity and cash it out, either take the cash and pay the taxes and penalties,<591/2 gets 10% penalty. You can also pull your 401 to another fund or cash with same tax and penalty unless you are over 50. Check IRS rules. or roll it to an IRA account. Severance is ran as payroll and paid out lump sum, with max tax withholding.