Pension or 401K?
 

I’m currently with the FRS, Florida Retirement System. I did it because being DACA I never really thought I’d be able to use any of my retirement benefits anyway, whether it was pension or investments so I just picked one. But I saw a thread where someone was complaining about the unfairness of not getting social security benefits and others were suggesting they do a 401K. I didnt want to piggyback that post so I want to know more about how 401K would benefit us as DACA. I’m able to switch from pension to investments so if there is a chance I can access these funds when I’m old or heaven forbid disabled, I’d definitely like to know more. So please feel free to discuss and share all you’ve heard and know about 401K benefits generally and specifically for DACAs please.

Re: Pension or 401K?
 

I too have a pension plan as a public service employee in my state. Have had traditional 401k plans in the private sector before.

My advice: Take the 401k option. Even better, if u can fund a Roth IRA, do it.

Re: Pension or 401K?
 

I was actually looking about setting up a Roth IRA also but privately not through my employer. But why do you suggest a 401K?

Re: Pension or 401K?
 

Because with 401k, once vested, you own both your contributions (what you contribute through payroll) AND your employer match (benefit). Most pensions will not allow you to own the benefit portion until retirement or until you have been employed for a significant # of years or are older than X age.

So unless you plan to remain a public employee in FL, I'd prefer the 401K. Are you classified (union) or professional staff?

Re: Pension or 401K?
 

I do both. I work for State of California, and I have both pension and 401k.

Re: Pension or 401K?
 

I’m not in a union. I kinda fell into local govt back when DACA began and we all scrambled to find legitimate work. I took the first offer I got lol but I don’t necessarily want to stay in local govt. Even if I do I don’t necessarily want to be limited to FRS employers only.

Re: Pension or 401K?
 

401K, but only up to your employer's match.

You can withdraw your money early (with 10% penalty) in case the worst happens. You would come out ahead even with this penalty from the employer's match.

I maximize my employer's match, then the rest I keep as emergency.

If your employer does not do 401K matching, don't do either pension or 401K.

We are very special case and I don't believe we should follow the general recommendation of stuffing money in 401K and other retirement accounts unless to get the full employer's match.

We need very liquid money and asset. Supreme Court will likely go against us and you need to be able to handle loss of income and displacement to some place foreign to you.

Re: Pension or 401K?
 

We are not special- we have the limitations for retirement investment that undocumented ppl have.

Do state employees in FL have an option to opt out of participating in a pension/401k plan? In my state nyet!

I know it sucks, but not more than funding SS for the ppl who want to see us exiled.

Re: Pension or 401K?
 

I don't understand what you mean. What limitations for retirement are you referring to?

We follow the same rules as every other worker in the U.S. We are eligible for 401K, IRA's etc...

Every financial advisor will say everyone should maximize their 401K and IRA.

But in my opinion, we are special case and should not follow this advise since we need super liquid assets in case things go more south on us and we become the next TPS tragedy.

Re: Pension or 401K?
 

Pension is nice and not many places offer that anymore except the government because they lose tons of money. If you are currently in the public sector get vested and lock in your retirement rate. Then go private, make tons of cash and invest in a 401k. Afterwards go back to the public sector 10-20 years before retirement to get that sweet pension back on track. You will retire with a pension and a 401k, and if you eventually adjust you will also get the social security benefits (if they still exist by then)