Cash out 401 k?

[devilleather]

Im a carpenter in Indiana and my employer has recently signed with the union forcing all employees to do the same. My question is since my union now handles my retirement and my employer no longer contributes can I either cash out or roll over my money?

 

[cbg]

Is the union making contributions to the 401k? Is the 401k frozen? Blacked out?

 

[justalayman]

Im a carpenter in Indiana and my employer has recently signed with the union forcing all employees to do the same. My question is since my union now handles my retirement and my employer no longer contributes can I either cash out or roll over my money?

I believe you can do with it as you wish.

If you aren't old enough to begin withdrawal without penalties or valid justification, you will pay a penalty fee for cashing it out. The employers contributions will also be considered income. You will owe taxes on that money.

cbg
Is the union making contributions to the 401k? Is the 401k frozen? Blacked out?

maybe this will help.

he was a non-union carpenter. The employer established a 401k for the employees. The employer has now become a signatory to the union contract and the employer has terminated contributions to the 401k as the employees are covered by a pension through the union.

the only part I don't know is if the union has a 401k for the employees but that shouldn't change anything, I don't think.

 

[cbg]

Actually, we don't know anywhere near enough to know if he can 'do what he wishes'. 401k's are very heavily regulated and generally, you cannot cash out or roll over funds as long as you are still employed by the sponsoring employer. IF the 401k is being shut down altogether in favor of the union's plan, then MAYBE he can get to the funds now. But what if the plan is going to be rolled over into the union plan? That's been known to happen. We just don't have enough information to say as of yet.

 

[OHRoadwarrior]

Actually, we don't know anywhere near enough to know if he can 'do what he wishes'. 401k's are very heavily regulated and generally, you cannot cash out or roll over funds as long as you are still employed by the sponsoring employer. IF the 401k is being shut down altogether in favor of the union's plan, then MAYBE he can get to the funds now. But what if the plan is going to be rolled over into the union plan? That's been known to happen. We just don't have enough information to say as of yet.

100% correct. Just because OP is now in a union does not mean his employer will be funding a pension plan through the union. It may terminate the 401k or perform some sort of administrative transfer, I don't know enough about the ins and outs to speculate there. If the plan is terminated, he may be required to roll it into a private plan or cash it out, as he chooses.

 

[devilleather]

First of all thanks for the replies. The union 401k will be new and has no connection with the old. The old 401k will still be active since the foreman of the company are not required to join the union therefore contributions will still be made into their 401k. So basically my money is only drawing interest. My company tells me I would have to quit in order to have access to it, however they are very shady and I would not put it past them to lie to us. Thank you for any information

 

[cbg]

No, they are telling you the truth. 401ks are very heavily regulated and where the plan is remaining active, even if no further contributions are being made, Federal regulations do not permit you to access the money as long as you are actively employed.

 

[LdiJ]

Im a carpenter in Indiana and my employer has recently signed with the union forcing all employees to do the same. My question is since my union now handles my retirement and my employer no longer contributes can I either cash out or roll over my money?

Even if you have the option to cash it out, do NOT do so. The tax burden would be enormous. If you have the option to roll it over into a private IRA of your own, you can certainly do that. Check with your employer about that.

 

[cbg]

He will not have that option, or any other option for cash out or rollover, as long as he is actively employed.

 

[justalayman]

devilleather;

are you continuing to work for the same employer for the foreseeable future or have you hit the hall?

 

[devilleather]

devilleather;

are you continuing to work for the same employer for the foreseeable future or have you hit the hall?

The company i'm working for seems it is not doing well as they are several months behind in paying our medical benefits to the union also their other bills, I will stay with them until I can hustle another job at a different company. I am worried that if the company goes bankrupt will my money be safe. thx

 

[justalayman]

The company i'm working for seems it is not doing well as they are several months behind in paying our medical benefits to the union also their other bills, I will stay with them until I can hustle another job at a different company. I am worried that if the company goes bankrupt will my money be safe. thx

which money? Your 401k? Yes, it will. The company cannot take it back once it is deposited into the account.

Just make sure it is actually in the account. You should be getting some sort of statement from the investment firm that is administering your 401k.

 

[cbg]

Who is the plan's third party administrator?

You will not lose money through the company's bankrupcy unless the 401k plan is heavily invested in your own company's stocks and bonds. The accounts are managed by third party administrator, which provides protection to the plan.

 

[devilleather]

which money? Your 401k? Yes, it will. The company cannot take it back once it is deposited into the account.

Just make sure it is actually in the account. You should be getting some sort of statement from the investment firm that is administering your 401k.

I ask for that statement every year and I do get it however it only states financial gains/losses, interest and such, it gives no info on who the 3rd party admin is or any other helpful contact information. The name is "Jack Isom money purchase plan'' if anyone has the resources to find out more than me. Shouldn't I be able to have access to my account online? Thanks again

 

[cbg]

There is no requirement that you have online access. It's handy, it's frequently offered as a courtesy, it is not required by law.

Who sends out the statements?