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TacoD

(581 posts) Thu Mar 12, 2015, 01:03 PM Mar 2015

Cash balance pension?

If I am around 40 years old, joining a new employer and have the option to elect between a 401k and a cash balance pension, which should I choose? I know that a traditional pension would be best, but that is not an option here. I have only had a 401k up to now and know very little about how cash balance pensions work.

3 replies

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Cash balance pension? (Original Post) TacoD Mar 2015 OP

You may find this webpage useful... PoliticAverse Mar 2015 #1

I don't see much difference in the two upaloopa Mar 2015 #2

Thanks! (nt) TacoD Mar 2015 #3

PoliticAverse

(26,366 posts)

1. You may find this webpage useful...

Reply to TacoD (Original post)

Thu Mar 12, 2015, 01:06 PM

Mar 2015

http://www.dol.gov/ebsa/faqs/faq_consumer_cashbalanceplans.html

upaloopa

(11,417 posts)

2. I don't see much difference in the two

Reply to TacoD (Original post)

Thu Mar 12, 2015, 01:14 PM

Mar 2015

You are limited at retirement by the amount saved while you work there. I would see if both could be rolled over if you leave. A 401K is yours no matter where you go I don't know about the other plan.
Also check the vesting requirements

TacoD

(581 posts)

3. Thanks! (nt)

Reply to TacoD (Original post)

Thu Mar 12, 2015, 06:42 PM

Mar 2015

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