401k

Yellow Corp officially filed Chapter 11 bankruptcy Sunday (8/6/23). Pensions & Investments published an article on August 7^th, 2023, discussing the status of your Yellow Corp. retirement benefits.

Key Takeaways:

• Participants whose benefits transferred to the insurance company in 2021 are not affected and will continue to receive 100% of their benefits.
• Union employees will continue to receive their pension benefits. (These benefits will remain reduced).
• Pension Benefit Guaranty Corp (PBGC) has the option to terminate Yellow’s pension and take it over.

Participants in the non-union Yellow pension plans should keep a close eye on what the PBGC decides to do in the coming days to understand what will happen to your benefits.

See Full Article:

https://www.pionline.com/pension-funds/yellow-corp-non-union-pension-participants-waiting-mode-after-bankruptcy-filing?utm_source=p-i-breaking-news-alert&utm_medium=email&utm_campaign=20230807&utm_content=hero-readmore&CSAuthResp=1691500914609%3A0%3A479097%3A391%3A24%3Asuccess%3AC9887CB4319507AFAD702BEFD9C37858#cci_r=

EXECUTIVE SUMMARY

The answer: It depends.

Your 401k is designed and works best as a tax efficient way of investing for your future retirement. Using the 401k loan feature as your own personal piggy bank is ill-advised.

But in some cases, considering a 401k loan may actually make financial sense and safeguard your retirement portfolio.

Keep reading as we discuss 401k loans.

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