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The Family Piggy Bank The Family Piggy Bank

I have a pension?

Posted by on May. 8, 2013 at 2:37 PM
  • 4 Replies

I just found out I am fully vested in the pension plan for a company used to work for over 4 years ago. I didn't even know I had a pension. I called to find out how much it was worth and currently its at over 8K!

So do I take it out (20% penatly and 10% IRS penalty) or just leave it and let it grow?

If I take it out, do I pay credit card bills leaving only 2k on a small interest card which I can pay that off within a few months and be credit card debt free!

Or do I take it out and invest in a Roth IRA?

Any other suggestions....What is best to do in the long run?

by on May. 8, 2013 at 2:37 PM
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Replies (1-4):
baconbits
by Bronze Member on May. 8, 2013 at 3:16 PM

 If it's a solid company I'd leave it be. $8,000 is a start toward retirement that you wouldn't have otherwise. Would you really pay $2,400 in interest on the credit cards? I also don't like to give Uncle Sam any more money then I have to.

3mom627
by Member on May. 8, 2013 at 7:44 PM

 If it's making money, leave it in there. Don't take it out like I did with mine. 8K will grow. When my DH retired, I rolled mine $10K into his.

3MOM627

have a nice day

QuiltLover
by Jocelynn on May. 8, 2013 at 10:20 PM

Dave Ramsey will say to never touch your retirement until it is time to live from it..If you didnt know about it, what is your recourse for paying off the creditcards? Think long and hard before you use it...it will benefit you much more when you really need to live from it.

philsmom196
by New Member on May. 8, 2013 at 10:57 PM

Don't take it out, put the stress from it to a small savings, say "save $100 in the next ~blank~" it'll keep the pension plan off my thinking grid, it does work, get a friend, read a Bible passage every time you think you're going to cash in your life savings,

Go to consumerscredit with your credit card debt, they'll help you pay it

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