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Discussion Starter · #1 ·
I worked for a MA municipal PD for 5 years before switching to a RI muni PD. Now I need to either cash out my MA pension contributions or transfer them to a 401K.

Anyone have any experience with this? Would the money be taxed if I move it?

Thanks!
 

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Are there any provisions in RI for you to move your MA contributions there and receive creditable service?
 

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Discussion Starter · #4 ·
What county?
Bristol County
Are there any provisions in RI for you to move your MA contributions there and receive creditable service?
I believe I can move the money into a deferred compensation program much like the Smart plan offered in MA. Unfortunately I can't transfer anything into the actual pension system itself. The clock restarted when I left MA, luckily there is no minimum age to collect here so I can leave at 51, 4 years before I would've been able to in MA
 

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Anyone have any experience with this? Would the money be taxed if I move it?

Thanks!
Easiest thing to do would be to set up a new deferred compensation plan in RI if you haven't done so and have them roll your Mass pension money over. As long as you roll it over you won't have to pay taxes or penalties. Your new department/hr should have a plan representative that can help you do this.
 

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I'd roll to a private 401k better control of your money. Just find a reputable financial advisor.

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Hey, is there a substantial chance you might return to public employment in Massachusetts in the future?
The reason I ask is because your contributions to the retirement system earned you almost nothing for your five years... the interest is like bank checking account interest.
If you were going to return to employment in Massachusetts at some point in any state, county, authority, or municipal job, then I would leave the money in. If you come back to work here and manage to get to ten years total so you would vest in the pension system, you would be able to retire out of it and get a much better return on those five years of contributions.
If you are not coming back, then I will defer to others here who provided information about roll over.
And, of course, good luck! I hope RI has a better future for cops than Massachusetts seems likely to have.
 
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You’ll get absolutely croaked in taxes if you cash it out. As NEPS said, if there’s any chance you’re coming back to MA for a public sector job (other than Transit), keep it in the system.

If you’re absolutely certain you’re not coming back, roll it over into a 401K or a 457 plan in Rhode Island, consult a reputable financial advisor who won’t try to sell you life insurance.
 

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You can very easily open an IRA account with Fidelity or the like and roll it over with no penalty.
Bloodhound is right. I use Fidelity and find them pretty good. Whatever you do, do rollover, don't take a payout.
 

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I am on the opposite side, I need to pull my money out of the RI pension system. Before they use it to give more hand outs to the gold card holders.
 
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