boxhauler

An excellent point that I had forgotten, but could see myself using in the near future. Anybody done this that would like to describe their experience? Pros and cons?

PurpleToolBox

Does anyone know why the Vanguard funds in our FedEx portfolio are changing and what the significance of that is?

siggy112

Not a CPA but I believe the post tax contributions can be rolled over to a Roth IRA which will grow tax free. At least that is what I was advised by my financial advisor.

iarapilot

I have done it quite a few times over the years. You just log on the Vanguard site, go to Manage your money, Manage your loans/withdrawals, and take it from there. It should show you how much you have in the after tax and you chose how much you want to withdraw. It is then deposited in your bank account in a couple of days.

I found out after doing a couple of withdrawals in a calendar year, that that is the limit. And once you do your two, the Vanguard site does not show how much you have in the after tax until the beginning of a new year.

I see it as basically a savings account that is making money on whatever investments you have selected. It is easy to get a withdrawal.......maybe to easy!!

Raptor

I believe it's simply lower cost/lower expense ratios plans. The exact same investments, just a slightly different name with lower costs. This has been done before.

Bandit524

I inadvertently deleted the MEC message and looked on the ALPA website with no luck; anyone want to provide a link to the article?

Raptor

I'm link challenged http://fdx.alpa.org/Home/Content/Con...-11-18-14.aspx so I hope this works.

If not, fedex.alpa.org log in, news tab, lower right under "stay informed" section.

Bandit524

Link worked and thanks!

dogbone

For any of you contributing to the "after tax" RSP account you may want to consider the following.

When you retire any "after tax" funds that you have contributed can be rolled into a Roth IRA. Any gains from those contributions will go into a regular IRA. So if you contributed 100K over the years and it grew to 300K you can place 100K in a Roth IRA but the other 200K will go into a regular IRA. Keep in mind that "before tax 401K" dollars will go into a regular IRA as well.

Now comes time to start taking distributions from your regular IRA. They will be taxed as ordinary income. Of course that will be in addition to your retirement income, dividends, interest, income property, wives income, Social Security, and other IRA income. The point I'm making is that you may have more income after turning 65 or 701/2 than right after you retire.

If you had invested that "after tax" income in an investment account away from the Fedex 401K all gains would be taxed at the Capitol Gains rate of 15% rather than the Regular Income rate of 25%-28%.

kronan

They Can be rolled into IRA's or Have to be rolled into IRAs?

And, certainly haven't done any math on best options. But I was surprised to read that I could roll such a large contribution into a Roth IRA-benefit of the Roth is more than the Tax free forever benefit, but the benefit that RMD's are not required and that account can continue to grow tax free until you need\want to tap it.

All the various retirement strategy's are still off in the all too close future for me...

But, I'm thinking a file and suspend on SS with an intent to start collection SS when I hit 70.
Starting RMDs early from my regular IRA-with the intent of investing any extra money back into a taxable account.
Deferring my Roth IRA for as long as possible.

Oh, one other thing I do is back door my regular IRA contributions into a Roth IRA...speaking of which, almost time to do that for 2014