jeftifyoh Posted July 9, 2007 Share Posted July 9, 2007 Hi, I am new to this forum and not quite sure what to do. But I have a question and no one seems to be able to give me the answer. My questions is this, if I've taken the $100K buyout, do they repay any TESPHE loans with the buyout money? I don't think they do because you technically don't owe the company any money because that money was yours to begin with. Any help would be appreciated! Quote Link to comment Share on other sites More sharing options...
wixommm Posted July 9, 2007 Share Posted July 9, 2007 Hi, I am new to this forum and not quite sure what to do. But I have a question and no one seems to be able to give me the answer. My questions is this, if I've taken the $100K buyout, do they repay any TESPHE loans with the buyout money? I don't think they do because you technically don't owe the company any money because that money was yours to begin with. Any help would be appreciated! No they do not take any TESPE repayment monies out. You will have to contact Fidelity to set up a payment plan or take the hit by not repaying it. Repay it. I know of a few people who had the same situation and that is what happened for them. The only money they look for is back support court orders and if you have any type of finacial court orders on you, it will slow the process down on recieving your buyout check. Good Luck :shades: Quote Link to comment Share on other sites More sharing options...
jeftifyoh Posted July 9, 2007 Author Share Posted July 9, 2007 Thanks so much for your help. Trying to get any information out of Labor Relations or Payroll is near impossible! Good luck to you also! No they do not take any TESPE repayment monies out. You will have to contact Fidelity to set up a payment plan or take the hit by not repaying it. Repay it. I know of a few people who had the same situation and that is what happened for them. The only money they look for is back support court orders and if you have any type of finacial court orders on you, it will slow the process down on recieving your buyout check. Good Luck :shades: Quote Link to comment Share on other sites More sharing options...
sept68 Posted July 9, 2007 Share Posted July 9, 2007 I thought you have to repay the loan immediately or you are required to cash out. Quote Link to comment Share on other sites More sharing options...
jeftifyoh Posted July 9, 2007 Author Share Posted July 9, 2007 I would hope not. Hopefully they'll send you a coupon book and allow you to make payments. Does anyone out there know this to be true? I thought you have to repay the loan immediately or you are required to cash out. Quote Link to comment Share on other sites More sharing options...
sept68 Posted July 9, 2007 Share Posted July 9, 2007 I would hope not. Hopefully they'll send you a coupon book and allow you to make payments. Does anyone out there know this to be true? Does anyone have the answer? Come on. I thought this site was full of know-it-alls. Normally when you leave a company you are required to roll 401K monies into another 401k, and IRA, or cash it out. You can't roll over monies that are tide up in a loan. Can you cash the loan part only? How do you pay the early withdrawal penalties and taxes? Quote Link to comment Share on other sites More sharing options...
avon lake assembler Posted July 9, 2007 Share Posted July 9, 2007 You have to pay it back as soon as you leave Quote Link to comment Share on other sites More sharing options...
jeftifyoh Posted July 9, 2007 Author Share Posted July 9, 2007 Why would you have to pay it back when you leave? It's your money that you've borrowed from. You should have the choice of paying it back per your contract with Fidelity or defaulting against it and claiming it as income. Who notifies Fidelity that you've separated from the company, you or Ford? Does anyone know if there is a hotline that you can call to get the answers? You have to pay it back as soon as you leave Quote Link to comment Share on other sites More sharing options...
MSP_M/R Posted July 9, 2007 Share Posted July 9, 2007 A loan is a loan. If you deposit $1000 into a savings account and then Use it as collateral for a $1000 loan, you still have to pay it back. If you have $50K in TESPHE and take $10K to do whatever with, you still have to repay that $10K. The difference is that you are paying yourself back the interest and still show $50K in your account for all intents and purposes. Don't pay it back and you get hit with fees that you never knew exsisted for early withdrawl. Quote Link to comment Share on other sites More sharing options...
TCAPBtch Posted July 9, 2007 Share Posted July 9, 2007 I took the buyout...last day was 12-15-06. I was sent a payment book approximately 2 months later. After not making payments, I was given the option (in April) to catch up on payments or repay the entire loan by 6-30. If I did not do so, the default would be reported to the IRS in January of 2008. If you take the buyout in the same year your loan defaults, you are going to get hit with maximum taxes on the balance of the loan (like your buyout was taxed), plus 10% early withdrawal...so approximately half the balance will be owed to uncle sam. It doesn't take a rocket scientist to realize that you are much better off paying yourself than uncle sam. Quote Link to comment Share on other sites More sharing options...
ptsweeper Posted July 9, 2007 Share Posted July 9, 2007 I think Wixommm is right. The issue is not with Ford, it is with Fidelity and it has more to due to with Tax laws than money owed. Quote from the salaried retirement handbook: "If you do not pay off your loans in full at the time of your retirement, you will be sent a coupon book for your use in making monthly payments directly to Fidelity." Also: "If you do not comply with the Plan's loan repayment provisions, the outstanding loan balance will be treated as a distribution of assests and will be subject to federal, state, and local income taxes, and possible early withdrawl penalties." Basically, any gains you have would be treated as ordinary income+ 10% penalty. If you own Ford stock, you won't have to pay much. Quote Link to comment Share on other sites More sharing options...
jester13 Posted July 9, 2007 Share Posted July 9, 2007 (edited) A loan is a loan. If you deposit $1000 into a savings account and then Use it as collateral for a $1000 loan, you still have to pay it back. If you have $50K in TESPHE and take $10K to do whatever with, you still have to repay that $10K. The difference is that you are paying yourself back the interest and still show $50K in your account for all intents and purposes. Don't pay it back and you get hit with fees that you never knew exsisted for early withdrawl.[/quo Edited July 9, 2007 by jester13 Quote Link to comment Share on other sites More sharing options...
tbldbxorntnap Posted July 9, 2007 Share Posted July 9, 2007 Why would you have to pay it back when you leave? It's your money that you've borrowed from. You should have the choice of paying it back per your contract with Fidelity or defaulting against it and claiming it as income. Who notifies Fidelity that you've separated from the company, you or Ford? Does anyone know if there is a hotline that you can call to get the answers? I can tell you first hand what happens, I had a loan go in default in 2006 when i had rotor cuff surgery i was out almost 3 months and nothing was sent to fidelity to cover payments, they sent me a letter to inform me that i was in the rears of about a $1000, called them and tried to explain my situation,all they cared about was my in the rears payments and told me if i didn't pay that up front, they would have no choice but to default my loan and report it to the IRS , well they did they sent me a 1099 with the balance of my outstanding loan, i took a major hit at tax time to not only the Feds but my State as well all i can say is if you owe fidelity on any outstanding loans pay it off before they send you a 1099 form because it will affect you big time tax wise. Quote Link to comment Share on other sites More sharing options...
93stang Posted July 10, 2007 Share Posted July 10, 2007 I would hope not. Hopefully they'll send you a coupon book and allow you to make payments. Does anyone out there know this to be true? Hi! I took the buyout in Jan. $100,000K. They do not take any money if you owe on your TESPHE what-so-ever. I can assure you. I did in fact have a loan that was due and tried to contact fidelity for a coupon booklet. They were very very unhelpful!! I had only a small loan and realized that I had to repay this loan by 06/30/2007. They are sure on the ball when they mail you the letter telling you that they have informed the IRS about the money you owe on the loan and that it wasn't repaid. As far as a coupon booklet PULLLLEase I called several times to no avail. I sent their money by 6/25th I believe this was the last day you could send in the whole amount without paying penalties. My loan was very small but it was just the point of them not being helpful at all that ticked me off!! Any other questions out there about buyouts or ETAP let me know. I used a lot of money provided by ETAP to go from an Associates Degree thru completion of a Masters while working at Ford. Unfortunately because I chose to due it while I was working instead of EDOPP, I have no recall rights at all. I'm still very proud that my family is one of the few that had five generations working at Ford. Quote Link to comment Share on other sites More sharing options...
Tags Posted July 10, 2007 Share Posted July 10, 2007 After leaving NAP, haven't got my buyout check yet, I called Fidelity to find out what the options are on my TESPHE .... we have four options.... 1. Do nothing, you can leave it right where it is. period. 2. Roll it over into a Fidelity IRA 3. Cash it out 4. Roll it over into new employers 401K/IRA plan. Also learned that we CANNOT cash out our pension. Ford informs Fidelity that you no longer work for Ford; 401k.com has already been updated for me. When I turn 55 years old, I'll get $192 per month for my 8.9 years of service. :happy feet: Quote Link to comment Share on other sites More sharing options...
jeftifyoh Posted July 10, 2007 Author Share Posted July 10, 2007 Tags, what was your separation date? After leaving NAP, haven't got my buyout check yet, I called Fidelity to find out what the options are on my TESPHE .... we have four options.... 1. Do nothing, you can leave it right where it is. period. 2. Roll it over into a Fidelity IRA 3. Cash it out 4. Roll it over into new employers 401K/IRA plan. Also learned that we CANNOT cash out our pension. Ford informs Fidelity that you no longer work for Ford; 401k.com has already been updated for me. When I turn 55 years old, I'll get $192 per month for my 8.9 years of service. :happy feet: Quote Link to comment Share on other sites More sharing options...
Tags Posted July 11, 2007 Share Posted July 11, 2007 OFFICIALLY it was June 29th 2007. Last day I was there was the 28th. I'm not expecting my buyout check for another week or so. Quote Link to comment Share on other sites More sharing options...
wixommm Posted July 11, 2007 Share Posted July 11, 2007 OFFICIALLY it was June 29th 2007. Last day I was there was the 28th. I'm not expecting my buyout check for another week or so. You can also roll over your tespe into any other finacial investments 401k, through your bank or like ameriprise, I rolled mine into an annuity, IRA, you dont have to keep with fidelity even though they will try and talk you into it. Quote Link to comment Share on other sites More sharing options...
paulpegx@aol.com Posted July 11, 2007 Share Posted July 11, 2007 You have to pay it back as soon as you leave IN REGARDS TO EXISTING TESPHE LOANS, THEY WILL SEND YOU ACOUPON BOOK AND YOU SHOULD AT THE MINIMUM MAKE THE PAYMEWNTS DUE FOR THIS YEAR OF 2007 OR WHN YOU TOOK THE BUYOUT AS THE "IRS" REQUIRES THAT FORFEITURE OF A 401K PLAN LOAN BE DECLARED IN DEFAULT IF NOT KEPT UP TO DATE. WHY REPAY ? BECAUSE YOU WILL HAVE TOO PAY APENALTY ON THE AMOUNT OWED AS WELL AS THAT AMOUNT GETS ADDED TO YEARLY INCOME FOR 2007, ADD MOST LIKELY IN ALL CASES YOUR MONEY IS TAXED A A MUCH HIGHER RATE THSN IF YOU CAN PUT OFF DEFAULTING TILL THE YEAR AFTER THE BUY OUT. YOU NEED TO SPEAK TO A GOOD TAX ADVISOR, TOO EVALUSTE EACH SITUATION, AS WE ALL HAVE DIFFERENT SCENERIOS. HOPE THIS HELPS, MOST IMPORTANT PART IS ASK AROUND FOR A GOOD TAX PLANNER , PAY THE FEE, YOYU'L USUALLY END UP OFF MUCH BETTER IN THE LONG RUN!!!! BEST OF LUCK, I'M NOT A KNOW IT ALL BUT MANY LIKE MYSELF CARE ABOUT HELPING OTHERS IF POSSIBLE. CALL FIDELITY HAVE YOUR QUESTIONS REAdy, have found them to accurate and reliable. Quote Link to comment Share on other sites More sharing options...
Quickdraw Posted July 11, 2007 Share Posted July 11, 2007 I tool the buyout and also had an outstanding loan. You don't need to make weekly payments (or the monthly equivlant) but you do need to make periodic payments of some amount to keep from going into default... Quote Link to comment Share on other sites More sharing options...
93stang Posted July 13, 2007 Share Posted July 13, 2007 IN REGARDS TO EXISTING TESPHE LOANS, THEY WILL SEND YOU ACOUPON BOOK AND YOU SHOULD AT THE MINIMUM MAKE THE PAYMEWNTS DUE FOR THIS YEAR OF 2007 OR WHN YOU TOOK THE BUYOUT AS THE "IRS" REQUIRES THAT FORFEITURE OF A 401K PLAN LOAN BE DECLARED IN DEFAULT IF NOT KEPT UP TO DATE. WHY REPAY ? BECAUSE YOU WILL HAVE TOO PAY APENALTY ON THE AMOUNT OWED AS WELL AS THAT AMOUNT GETS ADDED TO YEARLY INCOME FOR 2007, ADD MOST LIKELY IN ALL CASES YOUR MONEY IS TAXED A A MUCH HIGHER RATE THSN IF YOU CAN PUT OFF DEFAULTING TILL THE YEAR AFTER THE BUY OUT. YOU NEED TO SPEAK TO A GOOD TAX ADVISOR, TOO EVALUSTE EACH SITUATION, AS WE ALL HAVE DIFFERENT SCENERIOS. HOPE THIS HELPS, MOST IMPORTANT PART IS ASK AROUND FOR A GOOD TAX PLANNER , PAY THE FEE, YOYU'L USUALLY END UP OFF MUCH BETTER IN THE LONG RUN!!!! BEST OF LUCK, I'M NOT A KNOW IT ALL BUT MANY LIKE MYSELF CARE ABOUT HELPING OTHERS IF POSSIBLE. CALL FIDELITY HAVE YOUR QUESTIONS REAdy, have found them to accurate and reliable. Gee, I'm still waiting for my coupon pmt book and I took the buyout in Jan. and yes, I did call several times....look you do not just magically receive a coupon book...at least I did not!! Quote Link to comment Share on other sites More sharing options...
tbldbxorntnap Posted July 13, 2007 Share Posted July 13, 2007 Gee, I'm still waiting for my coupon pmt book and I took the buyout in Jan. and yes, I did call several times....look you do not just magically receive a coupon book...at least I did not!! They weren't very helpful to me either, in fact they reported me to the IRS and i took a major tax hit this year. Quote Link to comment Share on other sites More sharing options...
Fishon1 Posted July 14, 2007 Share Posted July 14, 2007 2 They weren't very helpful to me either, in fact they reported me to the IRS and i took a major tax hit this year. Left June 29 the last day :happy feet: Got my payment book July 13 magically didnt call anyone go figure. NO CHECK FROM FORD YET. SHOW ME THE MONEY FORD! Quote Link to comment Share on other sites More sharing options...
93stang Posted July 14, 2007 Share Posted July 14, 2007 They weren't very helpful to me either, in fact they reported me to the IRS and i took a major tax hit this year. I'm sorry to here that...if you took a buyout that check is taxed also big time!! the IRS will be happy with that also unfortunately. Quote Link to comment Share on other sites More sharing options...
tbldbxorntnap Posted July 14, 2007 Share Posted July 14, 2007 I'm sorry to here that...if you took a buyout that check is taxed also big time!! the IRS will be happy with that also unfortunately. No I took the PRLP Package and got a job with FEDEX Ground as a Package Delivery Driver. Quote Link to comment Share on other sites More sharing options...
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