Financial Independence Daily FI discussion thread - Thursday, December 09, 2021 |
- Daily FI discussion thread - Thursday, December 09, 2021
- Volunteer Opportunity for the FIRE-minded
- Need some different input
- IRS Rule of 55 - are there 401(k) plans that do not allow this?
- Inflation-proofing emergency fund
| Daily FI discussion thread - Thursday, December 09, 2021 Posted: 09 Dec 2021 02:02 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments] |
| Volunteer Opportunity for the FIRE-minded Posted: 09 Dec 2021 06:36 AM PST I want to highlight a cool volunteer opportunity that I think fits very well with the FIRE community. I just started working with an agency as a Volunteer Income Tax Assistant (VITA) with a local refugee agency. The program trains you on tax screening so you can provide free tax prep services to people in need. You don't need to have any prior tax experience, they train you on everything. With the recent influx of refugees from Afghanistan, there will be many families in need to assistance this tax season and VITA programs offer an impactful way for people in this community to use their skills and their passion to give back. I'm not advocating for a particular program, but if you google VITA in your local area I bet you'll find some programs. A lot of them are even fully virtual. Seems like a great way to help out whether you're FIRE'd or not. Cheers! [link] [comments] |
| Posted: 09 Dec 2021 10:47 PM PST Has anyone left a job for a substantial pay increase? Knowing you would fuck your old company. We haven't been able to hire a replacement for the last 2 guys who left and I'm about to leave ...the last guy left 8 months ago.... IT is getting competitive and my company refuses to pay for the best... [link] [comments] |
| IRS Rule of 55 - are there 401(k) plans that do not allow this? Posted: 08 Dec 2021 05:10 PM PST I have a 401k retirement account that is funded by my employer. It's a profit sharing plan. The IRS has the "Rule of 55" where you can withdraw from your current 401k penalty free if you separate from the company in the calendar you turn 55. I have been working at this company for over 35 years, and will be eligible for this soon (turning 55). In all of the articles I have read about using the Rule of 55, there is this statement: "Note: Not all employers may support these early withdrawals—and even if they do, they may require you withdraw all of your money in one lump sum. Check with your retirement plan provider to figure out your plan's policies." What exactly does this mean? I have read our company's Summary Plan Description, and there is no mention of the Rule of 55. It does say that if I terminate employment and receive a distribution "before the later of age 62 or Normal Retirement Age" that I may elect to receive a single lump-sum payment in cash. I am 100% vested. My question is: can I assume that my plan allows me to take this withdrawal the calendar year I turn 55? How does this work, does my company have any say in this since I'm not age 59 1/2? Do I take this single lump-sum and roll it into another tax-advantaged retirement account, or can I leave it where it is? I don't want to ask our 401k administrator at work, I don't want to tip my hat to the situation and possibly get terminated prior to my eligibility. Same with asking the plan provider, I would be afraid they would copy my employer's administrator with the question or their answer. I would appreciate any advice on using the Rule of 55 from anyone who has experience. I have been dreaming of retirement for a very long time, I don't want to screw this up. I only know how to work and pile money into the account. Not how to take the money out. [link] [comments] |
| Inflation-proofing emergency fund Posted: 08 Dec 2021 07:38 PM PST Live in a high cost-of-living area with three kids, mortgage, and student loan debt. All that to say, our emergency fund is a large chunk of change (over $35k). I hate the prospect of inflation eating away at it. I've heard of letting it sit in money market accounts or CD-ladders. Curious: how do y'all advantage or inflation-proof your emergency fund? [link] [comments] |
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