Job loss and taxes

[300UGUY]

Sorry to hear that. We have had a lot of that here in Michigan. The unemployement system runs training programs and helps with resumes. Whatever you do, don't sit at home. Something will turn up, but ya gotta be out talking to people to make things happen. Good luck.

 

[EddieWalker]

Sorry to hear about the job.

I had the feeling that the company I worked for was trying to go out of business with some incredibly stupid moves that cost us clients and millions of dollars. It was bought out by another company shortly after I quit, and from what I hear, they are closed down locations and loosing billions of dollars.

Instead of waiting for it to happen and stress over how I was going to pay the bills and find another job, I spent a year planning my move to Texas. Nothing has worked out like I thought it would, and some of the lows have been just about all I could take, but because I really didn't have any other choice, I stuck it out and life got better. Then it got ALLOT BETTER!!!! Now I'm at that point where I wonder how I got so lucky and have so much going for me?

Whatevery you do, have a backup plan and another backup plan for that one. Expect things to not work out like you want, and be ready to change directions. It's up to you what happens, and what you put into it will come back to you.

Good luck,
Eddie

 

[QRTRHRS]

In addition to checking with the human resources people at your work place, you may want to consult your accountant if you have one or an investment firm. Our credit union also helped us with investment counciling when my wife and I went through this.

We lost our jobs in high tech in 2003 when the work was sent overseas. The magic number was 75, ie; your age and years of service had to add up to at least 75. We also had "5 and 5" built into our contract. In the event of a layoff, you could add five years to your age and/or five years to your service to reach the number 75. You did not get any more money to your pension.

Being 52 at the time, that deal along with my 20 years of service got me a monthly pension. More than anything else, I miss the five weeks of vacation that I had.

 

[thatguy]

Sorry to hear about your impending lay off.. I reckon all those commercials are a lie arent they, BASF 'doesnt make anything better' in this situation..

As already mentioned, it is my understanding that if you roll your pension over it must go into another 'qualified' plan or they consider it a withdrawal. If you arent old enough when it is withdrawn, you will be hit with the penalty..

When my old employer was being bought out, they had set it up so my pension account could be transferred electronically so you dont have to worry about losing or forgetting you have a pension fund check.. I had to provide them the routing and account numbers of the new account and they took care of the rest.. That part went seamlessly.

I would get all the benefits/job training/resume service/placement counseling etc out of the company you can, you deserve all you can get..

Brian

 

[alchemysa]

I've been self employed most of my life, doing a killer stress job, virtually from the day I left school. At times I wished my clients would have dumped me and forced me to try something different. It never happened and I couldnt bring myself to make a move. I have stalled and whinged for years but recently I finally sacked myself and asked the clients to move elsewhere. I've taken an almighty income dive but I'm relaxed and happy.

My point is, it could be good to have a life changing decision thrust upon you. Make the most of it.

 

[kenmac]

Sorry to hear the loss of your job. Are there very many openings for jobs in that area. I don't get up that way much so, I don't know what might be available to you in that area

 

[kossetx]

JC, I feel for you man. That happened to me 3x as businesses I worked for sold and it sucks for sure. At least you have 6 months to look.

10 years ago I became a teacher for the stability it offered. It is, hands down, the hardest job I have done and I'll never be rich, but come summer time...well, it ain't so bad. My wife also teaches so we have that time together.

 

[ihookem]

Don't feel too bad, every job I ever lost I replaced it with a better one. Now I'm a self employed remodel carpenter and am better off. I wish I had six months, I was told on a Friday afternoon at 2:30 the company had no more work for me. I had an hour! That day I swore my own oath if I ever end up out of work it will be cause I messed up not some dumb *** back at the office. (p.s. keep your tractor or you'll be buying a new one after the better job you get in six months.)

 

[smfcpacfp]

First, I guess the only way this is tractor related, I'm loosing my job and may have to sell my tractor. It was a want, not a need.
I am 41 years old and will be loosing my current job in about 6 months. We were told our pension will be paid to us or we can roll it somewhere else. Do you pay a penalty on a pension like you would on a 401k? I'm just trying to figure out my finances before I make a move. Thanks, JC

It must be a defined contribution pension plan, correct?

You should be able to leave it where it is, which is often the best case. You are never required to take a distribution (or rollover) of a pension plan when you lose, or change jobs.

If you do, as some have mentioned, you would be best to have your pension carrier do a direct transfer to an IRA in which case there will be no penalty or taxation.

Incidentally there would be no penalty on a direct transfer of a 401(k) to an IRA or another 401(k). Sorry to hear about your job loss. Hopefully you will find a new one before you must sell your tractor.

Steve, CPA, CFP

 

[jinjimbob]

Depending on your plan, if you leave it in the same 401k and its above the needed threshold, they might charge you a yearly fee, but they also might charge you a fee to close the account out and transfer out (one of mine did this). These 401k companies are there to make money on whatever we do, win or lose.

If its a defined pension and you are vested, you might not be able to take it out at all. You might have too wait until you are at the minimum age of the plan.
And after all those years, the plan might have to be taken over by the PBGC and pay you peanuts . . . its all a gamble.