Job loss and taxes

RollTideRam · Oct 2, 2008

Our severance package has three options on the pension. 1 Lump sum. 2 Roll over to IRA.
3 Leave it where it is. There are some jobs opening up around here, just alot of people want them. If I wait till January and have consent from my employer, I can leave and still get my package, 16 weeks of pay. If I stay till April 1, I will get 20 weeks of pay and can just leave. At six months they will evaluate how many employees they need and start the layoff. Everyone that can stay after six months will get 1k a month extra for staying. JC

Lloyd_E · Oct 2, 2008

Rolltide.

Sorry to hear... I am going through the same thing. 21 years in. Needed 9 to retire. Age 45 plus young family. Just bought a new tractor and gear (cash). (Un)fortunately I had another angina attack and I am on sick leave for 17 weeks - but will be dismissed when sick leave is up.

Do your get severance plus pension or one or the other? I would hold out for the 6 months: you may keep your job plus you can build more severance or pensionable time or ramp up to something else.

My pension rolls into a private RRSP acc. Unfortunately the way unemployment works up here is that you have to use your severance before taking unemployment benefits. I still apply at the time of termination but cannot collect. Our lifestyle/overhead is low. The severance could last me for 1 year plus. Plus another year of unemployment insurance
- actually now they call it EI or employment insurance. So I am good for 2+ years.

In that time I plan to ramp up my private business plus get into a couple of different businesses. I am planning to diversify and apply the adage 'do the things you enjoy and make money at it'

Keep your tractor... I am finding work for me and my unit. Cash in always helps. Plus it my be one good relief mechanism for you.

Good luck and keep us posted.

Lloyd