Raptor

Are we at FedEx able to make in service non hardship withdrawals?

3 Ways to Try a Roth IRA, Including Mega Backdoor

KnightFlyer

I think you can take 2 withdrawals per year on after-tax monies. Check with Vanguard with a call or read the plan rules on their website.

I'm saving 4% after-tax with Vanguard (so as to not lose any B fund contributions). After retirement, I'm rolling all the after-tax monies into a Roth IRA (have to pay tax on any gains) when taxable income is lower.

Nightflyer

I looked into this recently.

If you take a distribution from your "after tax" savings, you must:

1) Pay ordinary income tax on the gains, and the gains are prorated for how much you take out.

and, here's the kicker:

2) Pay a 10% IRS penalty for any distribution prior to 59 1/2 years of age.

If you call Vanguard and ask to take some out, they will read a required statement where they warn you about the 10% penalty. I was getting ready to buy some land to diversify when I learned about the penalty and elected not to do it.

So, if you are older than 59 1/2, this might be good, but if younger, you are going to pony up 10% to the IRS.

MaydayMark

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I'm on LTD (I'm not sure if that matters) and I'm older than 59 1/2 but I've been making in service withdrawals for much of the past year.

I've been careful not to intermingle pretax and post tax savings (IRA vs ROTH).

I've transferred much of it to "FIXED INDEX ANNUITIES." ALLIANZ is currently paying a transfer BONUS of 30% (so for every $100,000 I transfer ALLIANZ deposits $130,000 in my account!!!).

DISCLAIMER: I'm not here to give financial advice but this looks like a GREAT DEAL to me!!! Fixed index annuities aren't for everyone but they have almost zero stock market risk.

DILLIGAF

Hey Mark,
Which FIA at Allianz are you using?
Thanks

Skippy320

Only on the gains.
You can take out your principal capital with no penalties.

Sent from my SM-N950U using Tapatalk

TOMM

Speak with your tax rep or R&I committee but you can go into vanguard, employer plan, manage my money, and convert your after-tax funds directly into a Roth after each paycheck. If you do this before there are any gains on that money after each check, it immediately goes into a Roth and will grow tax free. The contributions and gains.

https://retirementplans.vanguard.com...hInPlanQnA.jsf

busdriver12

Mayday, have you thoroughly vetted this product? When I have looked at reviews about Allianz annuities, they are pretty bad. The outstanding reviews look like they are written by company employees, but most of the reviews are terrible, and they sound real.

Huge surrender fees, problems getting your money back, large commissions, returns not what they promised. If it's a great product, why do they have to give you an additional 30K for every 100K you deposit? It sounds like this is not the stable, zero risk product that you want from an annuity, but something kind of shady. I am not comfortable with this company.

MaydayMark

Whew ... where to start? I'm not an investment advisor and I don't even play one on TV.

- I've done LOTS of homework. And like I said originally, fixed index annuities aren't for everyone.

- "If" you know you'll need this money in the next 10 years you can only access 10%/year without surrender charges (there's a clause that says if you need the money for medical bills/Nursing Home Care then there are no surrender charges for early withdrawal). I don't "think" I'll need this money for the next 10 years ...

- The Allianz 222 product is a NO COMMISSION product. The independent fiduciary broker is paid directly by ALLIANZ (not directly from the money you are investing).

https://www.allianzlife.com/annuitie...-annuities/222

As best as I can tell there is no downside stock market risk. "If" the market tanks you receive 0% interest that year but your principal and accumulated interest does not go down (do you think the market could be ready for another MAJOR correction in the next few years? Are you willing to bet your retirement savings on it?).

Last year ALLIANZ annuities paid more than 10% (granted it was a remarkable year for the market).

There are lots of different investments options (I own some of them also). There are other ALLIANZ options.

This doesn't work for everyone. I'm not trying to sell it to anyone. I just commented on the OP's original question.

busdriver12

Mayday, I hope this works out for you. I know it is a very popular product. But for others who are reading and may get enthusiastic about something that sounds so great, there are issues to consider. It is not insured by the FDIC or federal government, only by the strength of the company. If they go bankrupt, you could lose everything. This is a high commission product, though the buyer doesn't pay outright, their commission structure can pay up to 7.5% for the first year alone, in addition to commissions following years. The money comes from somewhere.