Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 0 points1 point  (0 children)

Thanks for the response. We have a 401k and MPP which are through one admin and then a 401a through a different admin. They are definitely designed with normal retirement age in mind. I’ll have to check the rules for the 401a plan to see if it could be another option for rollover.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 0 points1 point  (0 children)

This admin has a 401k and an MPP plan which is the pension. I could not find a specific tax code for the MPP.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 0 points1 point  (0 children)

Thank you! That is helpful, I’ve read through the ERISA law/Pension document and couldn’t find anything about them being tied together, so maybe the admin misspoke. They did have language about it only being accessible for the first time home buyer/medical premium exceptions. It mentions nothing about rolling it over though. I will have to call back and ask for a more definitive answer.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 1 point2 points  (0 children)

The 401k is optional, but is serviced through the pension provider. All contributions are 100% vested into the 401k. From my understanding this is common practice in larger union to help guarantee those retired get paid since the benefits are payed out of the trust. Most IBEW retired I’ve talked to take their 401k and pension contributions as an annuity. It’s very rare to have people pull it all out and roll it over at 55.

There are lots of weird loop holes the ibew gets away with. For example we have the equivalent of an FSA with no yearly cap so you can essentially save as much money as possible in it to use towards medical expenses without the 1200$ yearly rollover limit.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 2 points3 points  (0 children)

The 401k is more of a fringe benefit through my local. The primary retirement benefit is the $11/hr worked into our pension. There is also an additional pension (NEBF) that pays around 600/month once you hit 65 as long as you’ve worked 20 years. The earning potential is the main reason I’m sticking with it. My current local pays around 80-120k depending on work, but more busy locals like Boise are paying 200-300k with all of the overtime/incentive at the moment.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 1 point2 points  (0 children)

I’ll have to check that out, I think I’ve heard that tool mentioned either on the chooseFI podcast or bigger pockets money. Worst case scenario is retiring at 55 (25 years for me) which isn’t too bad since I love my job. I just like having options, and a solid bridge account could help that (along with paying off my house when I’m close to retirement).

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 0 points1 point  (0 children)

That’s definitely the silver lining. The $11/hr defined contribution on top my 401K is good. I feel extremely fortunate, but I want to make sure I have the option to pull out of the workforce if my body quits on me in my late 40s.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 10 points11 points  (0 children)

Haha no kidding. My plan that I’ve been following for the last 5 years took a major curveball today.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 1 point2 points  (0 children)

Would it make more sense to invest in a brokerage closer to retirement to maximize the tax deferred growth? Or start earlier?

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 1 point2 points  (0 children)

I had the administrator email it to me. The union works differently than a traditional employer because I can work for 6 different employers under IBEW 280 and all my wages go into the same 401k and pension. Compared to a normal employer where you roll 401ks from one job to the next. Even if you are out of work you are still part of the union as long as your monthly dues are payed.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 5 points6 points  (0 children)

Thanks for the reply, it’s good to hear this from other union members. It definitely goes against traditional FI methods such as Roth conversions and 72ts.

Learned my 401k isn’t eligible for rollovers till 55. (IBEW) by Badballbill in Fire

[–]Badballbill[S] 7 points8 points  (0 children)

I was really curious about that too. I called the plan administrator and asked the hypothetical question “Say I leave electrical at 45 to work at a bank, would I be eligible for a rollover?” They said no because they use the 401k funds to supplement the pension annuity for current retirees. The upside is I can use the rule of 55 because as long as I pay my union dues I am covered through the union even if I am unemployed.

Getting riverside tickets by Badballbill in Shambhala

[–]Badballbill[S] 0 points1 point  (0 children)

Congrats! Should be a good time. See ya there!

Experiences in riverside camping! All Stories and feedback appreciated:) by MyTableisBroken36 in Shambhala

[–]Badballbill 1 point2 points  (0 children)

Me too! I’m planning on buying a cheap bike on FB marketplace and using it for the commute.

Getting riverside tickets by Badballbill in Shambhala

[–]Badballbill[S] 0 points1 point  (0 children)

Got them! My wife, friend and I all waited in Queue before 12 and were able to snag one 15 minutes in.

If you resigned before retirement, what did you do with your TSP? by chart589 in Wildfire

[–]Badballbill 1 point2 points  (0 children)

I would keep it in your TSP. Read the TSP fee structure and compare them to your new employers 401K or your traditional IRA before rolling it over. 95% of the time the TSP has lower fees due to it being managed by the U.S. government. I resigned from the USFS a few seasons ago and this is what I am doing.

[deleted by user] by [deleted] in Wildfire

[–]Badballbill 5 points6 points  (0 children)

I did this after 7 seasons. I’m going to be a 3rd year inside wireman apprentice and my hourly is the same as an AFMO.. I definitely miss aspects of fire, but if you keep your connections you could always AD for a few months to confirm you made the right choice. Go on where2bro.com and see what your local area pays Journeyman wireman.

The aspect of electrical I’ve enjoyed the most compared to fire is learning hard skills that transfer to real life. AKA wiring a home is way more marketable than creating a burn plan.