Anybody know when they will be able to accurately calculate the lump sum based on last year's rates if you retire before 4/1/2019? Could not get a straight answer from Fidelity rep and 2/18/2019 is approaching quickly. I don't want to complete my selection until I can see the substantially more lump sum amount in writing.
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Yes you can direct the lump sum (which comes like 6 to 8 weeks after the retirement commences) to send a check to an IRA account elsewhere.
When taking the pension as a lump sum can it be moved out of fidelity? I have a Roth IRA already through American funds so a traditional IRA is out of the question. I’d max my roth for this year then put the remaining in my individual investor account I have through American funds. Pardon my ignorance I’m waaay too young to have thought about this already
I heard Fidelity will be able to provide the lump sum calculations on 2/15/2019. They will not pay out the funds for lump sum until 6-8 weeks after commencement. So probably around May 1. They are saying if you saved an estimate in November or December 2018 it will be a bit more than the lump sum you pulled at that time.
@bjt - MOST smart financial people I know would suggest that you take the lump sum, do a direct transfer into an IRA and invest those funds in a good mix of mutual funds. You can ask your Fidelity rep to run some numbers in that scenario, ask them what you could expect with an 8-10% return (conservative compared to historical S&P avg). If my calculations are correct, investing nothing else at 9% over 25 years you'd have $663,977 sitting there. At 12% average return you're over a million. Then the idea is you draw your retirement from your own funds. You have greater flexibility and control over your money this way. You don't have to worry about pension being underfunded down the road. All of that said, some people just prefer the security of the monthly annuity. If you go that way, try to avoid drawing funds from it until 65 if you can. Best of luck.
They cannot be overnighted to your home immediately, results can take up to 2 weeks as they have to send the information to an actuary to be calculated.
I did see on a TSPACE comment that after 2/14/2019 the calculations for lump sum will be available. This is really cutting it close to the 2/18/2019 off payroll date. If you can get something in writing from a Fidelity manager sooner, that would be a great idea.
For those who are not close to retirement 40 years old with 20 years of service, what would you recommend do with the pension? Fidelity says you do not have to take it and it will grow until I turn 65. The figures were $77k on 2/19 and 235k when I turn 65. Just looking esome guidance
It should have been done already for Legacy T and Legacy SBC folks (Bellsouth folks not covered by extension). An Email link from the ATO president Q & A stated that after 4/1 the CB calculation would drop 7-12K per 100K. I would get a Fidelity Manager in Pensions (not call rep) on the phone and tell them you want both estimates (before and after 4/1) overnighted to your home immediately. All estimates have a disclaimer "Plan documents will prevail" to keep them and the company from any liability but a hard copy in U.S. Mail is a good thing.