ThumbsUp

Perfect, thanks. Much better than leaving it in there.

Deathray

Not quite. There’s a loan that you pay back at whatever percent, and then there’s a straight withdrawal up to $100k. No penalty but you do owe the taxes on it. But, you have 3 years to pay the taxes, and 3 years to put it back in. You only owe taxes on what you don’t put back in, and any money you put back in is pre tax. It’s a good deal.

ThumbsUp

Do you mean that it is a good deal vs taking a loan for the same amount? Or is their some financial wizardry that you can do with that money over what you could do just leaving it it a tax beneficial account?

Deathray

I’m sure there are some tax wizards out there who could figure out a way to make it work.

duvie

Its a good deal in the sense that it turns all the Money the company contributed (as a contractual benefit) into normal income essentially. Without the COVID exemption you’d pay 10% penalty to access the money

ThumbsUp

That’s what I figured. I wasn’t sure if he meant that there was a way of doubling down like a backdoor roth or mega back door roth (which is probably the best feature of our PRAP, IMHO).

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

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.

2) If you desire ability to trade easier, you can move PRAP assets to a PCRA and trade like a brokerage or IRA. Schwab does not charge commissions on stock and ETF trades.

The stillest

except for family law.

if these times end up bringing divorce to your home, please keep in mind that NONE of your money is protected as mentioned above and the “lawsuits” are simple to file and win to invade your, or get 50% of your, retirement money

GreenerPastures

Excellent point about divorce litigation. Thankfully I haven't been down that road...yet.