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I was vested when I left, yes. But for the 401K it makes no difference, it is your money deducted from your wages and matching is part of agreed compensation. If you leave before you are vested you can take that with you.
Agreed. As I said I know nothing with regards to the MM&P plans. When I started with the MEBA the vesting period for the Money Purchase was 5 years. That has changed.
From MEBA Plans:
“Vesting” means you have a non-forfeitable interest in your account. In other words, your account balance belongs to you and it cannot be taken away. In general, you will be vested when you earn three Years of Vesting Credit. (You will also be vested when you reach your Normal Retirement Age, if that occurs before you earn three Years of Vesting Credit and are in Covered Employment.)…You earn one Year of Vesting Credit for each calendar year in which you complete 125 Days of Service. Generally, a Day of Service means a day worked in Covered Employment.
Basically the MEBA’s Money Purchase is in a sense a 401K that are employer only contributions per union agreement. Their “401K” is purely your contributions. Two separate but similar plans in that you can direct the investments from a list of options.
That’s not true. In a 401k employee contributions are always fully vested from the beginning but employer contributions aren’t. If you leave an employer before you are fully vested you can only take the vested percentage of employer contributions with you. If what you are saying is that employer contributions are 100% vested from the start that’s different than dating vesting doesn’t matter.
One can roll over a 401k into an IRA. I’m assuming this is what you meant by taking your 401k with you.
If anyone is having problems moving their money, a good option is to account transfer with a different brokerage. Fill in the info and let them deal with moving the money.
This is exactly what I am saying. I meantion it because I had to go through a lengthy administrative process to roll over my 401K and money purchase benefit, which is something a guy might not think about when he leaves the union. Moreover the union might mislead a departing member about the ability to perform a rollover to prevent them from actually doing it.
Things I had to deal with when I left the Union, which if I’m not mistaken this thread was about.
Increasing your taxable income because one day you might leave the union and have to do some paperwork is terrible advice.
Max out a 401k and a ROTH or a traditional IRA. Get that AGI as low as you can.
Was not my advice.
[quote=“W.T.Sherman, post:27, topic:14730, full:true”] Max out a 401k and a ROTH or a traditional IRA. Get that AGI as low as you can
You don’t need a union to do this.
This right here is what I was responding to. This is terrible advice.
You cannot invest in a 401k outside your employer unless you are self employed. You can invest in an either an ROTH or Traditional IRA on your own. If you invest with a traditional you will only reduce your AGI by $6,000 in 2019.
You can also have your own taxable brokerage account but this will not reduce your AGI and you will have to pay taxes on your gains.
Investing in your employers 401k plan will reduce your AGI by $19,000 (2019).
That’s not even true in this case because you have a qualified retirement plan through your employer/union so you can’t write off traditional IRA contributions.
Having left sailing in the past to pursue other avenues, my best advice would be to keep paying the dues. It’s a small amount to pay for the opportunity to have a Plan B…and you keep accruing points towards your book.