Originally Posted by gollum

One who can’t read and comprehend apparently;

1. I specifically said with respect to your 401k so since pass travel has nothing to do with that....

2. Tell me a difference between getting fired and furloughed when it comes to rolling over / moving your 401k funds.

so again; No difference between getting fired or furloughed when it COMES TO YOUR 401K

Originally Posted by Rawhide51

Again, reading comprehension is apparently your choice, not mine. Here, considering you are too lazy to just type it into google, let me do it for you:

Source 1: https://401kspecialistmag.com/2-ways-furloughs-and-layoffs-could-impact-401k-plans/


Furloughed employees often retain some or all of their benefits, usually remaining active—rather than terminated—participants in their employer-sponsored retirement plans.

“It’s very important for employers, and their plans’ recordkeepers, to understand that a furloughed employee is not a terminated employee,” the brief continues, “and employers should take care to code or flag the furloughed employee’s status appropriately for the plan’s recordkeeper so that a furloughed employee is not mistakenly permitted to take a termination distribution from the plan.”


Source 2: https://www.investopedia.com/ask/answers/169.asp

You should consult with a competent financial advisor or investment professional before taking action on any of the above scenarios.

Source 3: https://www.fool.com/investing/2020/...your-401k.aspx

A furlough is an unpaid leave of absence from work. It's similar to getting fired, in that you don't report to work, you don't get paid, and you may lose some of your benefits.

Originally Posted by ThumbsUp

Thanks... sounds like you can do this based on other’s experience. I understand the tax implications, which is generally better for pretty much everyone, although I would never promote that advice here.

Originally Posted by joepilot

People getting furloughed on the first round, especially if they have been here two years, still have almost this years full pay. Taking the allowed $100K distribution, even without the 10% penalty, will still result in quite an income tax hit. We have no way to know if this same penalty free distribution will be available next year.

Joe

Originally Posted by joepilot

People getting furloughed on the first round, especially if they have been here two years, still have almost this years full pay. Taking the allowed $100K distribution, even without the 10% penalty, will still result in quite an income tax hit. We have no way to know if this same penalty free distribution will be available next year.

Joe

Originally Posted by GreenerPastures

Couple points to consider.
1) Money in company-sponsored retirement programs is much less vulnerable to liability litigation than money in IRAs. In other words, if you’re sued for an at fault accident, vehicular, home owner, pet bite, etc., then assets in an IRA are much less safe than a 401, 403, TSP, etc. I had a lawsuit scare 2 years ago after my kid had a car accident. Guy sued big time because daddy had assets and high insurance limits (thankfully). Lawyers told me individual retirement accounts (IRAs) can be sought but employer-sponsored (401k, TSP, etc.) are very hard to sue for.
If you have considerable assets and kids, pets, cars or property, like most pilots do, this is something to consider. Lots of sleepless nights for me while the lawsuit played out.
A quick google search for reputable info or call to a lawyer will get you the correct info.

Originally Posted by Andy

Wow. I never knew that.
It's now making me rethink my plan to move my 401k to an IRA after retirement to save having to do RMDs from my 401k after I turn 70 1/2.

Did you have an umbrella policy?

Originally Posted by ReadOnly7

You can assign the tax burden to any of the next 3 years. I highly doubt my next year’s income will amount to even half of what this year will end up being. The $100K disbursement has more pros than cons in my situation. First and foremost, it allowed me to turn right around and pay off the 401k LOAN that I had out, with no further interest on that.

Originally Posted by ThumbsUp

There’s absolutely no tax penalty for what I was referring to... which was rolling your PRAP into IRAs when you’re furloughed.

Originally Posted by Blackhawk

I have six ex-wives, a boat, a motorcycle, three houses I can’t afford, I’m paying $2 million so my six kids (by six different ex-wives) can get degrees in liberation gay/lesbian literature between 1890-1915 from Wellesley College and Vasser, no savings, $200k in credit card debt, and here’s my advice...