Mandatory Vacation Payout question...

[smstonypoint]

One question not known is if the income from vacation not taken counts as "income" that is subject to the 401K contribution rules or it is some sort of miscellaneous income that is not subject as 401K income. That would be the only reason I could think why a company would not allow the 401K contribution against that income. That's what accountants figure out.

I retired in 2007 and was paid for my unused vacation time. I contributed the additional income into my 403(b) plan without any problems. I am not aware of any changes to the IRS regulations and I do not see why the rules should differ between 401k and 403(b) plans.

Steve

 

[ultrarunner]

In about 8 weeks it will be 2014... never thought I would make it.

Seems time really does fly when you are older.

I'm going to wait for the company letter and then go from there.

Stopped contributions into the 401k back in 2005 when the company match was eliminated...

Always could look into an IRA...

As always... appreciate the TBN brain trust's advice.

 

[smstonypoint]

Stopped contributions into the 401k back in 2005 when the company match was eliminated...Always could look into an IRA...

I don't want to come across as preachy, but your retirement will be here before you know it. Regardless of whether your company has a defined-benefit retirement plan, you won't regret putting aside money now in your 401K, regular IRA and/or a Roth IRA.

Steve

 

[2458n]

Roth IRA for those in the less than 50 percent tax bracket. There is more money to be made with that sharp pencil. Your best interest and the companies may not be the same.

 

[ultrarunner]

I welcome preaching/advice realizing there is much I don't know.

From 1982 to 1992 I put all of my money and effort into income property...

I figured early on that I needed to develop an independant financial plan and took the plunge buying my first home at age 22, the year I earned my engineering degree... also a time of record unemployment. Though property values fluctuated... rents have remained constant and I've done well by holding it.

In retrospect, I should have kept with my original plan... because those first 10 years investing gave me a solid footing.

Becoming an employee was also great for the first 10 years... the last ten years not so much.

Back in the 90's... the benefits of working in a Hospital environment were pretty amazing... just about everything I signed on for no longer exists... family medical, stock plan, 401k match, profit sharing, 5-year sabaticals, tuition expenses, incentive programs, etc...

The cashing out vacation pay and losing sick leave is just the latest in a series of changes...

I mentioned to the Boss today... yes, we were both working on Sunday, the suggestions I picked up from TBN and her reply was she is just trying to keep the doors open and if a good offer comes along, I should take it because it is anyone's guess how much longer this business model will survive with all the changes hitting health care.

Small independant hospitals are going the way of the dino... all that will be left are the big players when the affordable health care act is fully implemented.

 

[WM75Guy]

Must be time for Joint Commission. Since they now show up without warning maybe they will show up before you need off.

 

[300UGUY]

Must be time for Joint Commission. Since they now show up without warning maybe they will show up before you need off.

????WTF?

 

[300UGUY]

I welcome preaching/advice realizing there is much I don't know.

From 1982 to 1992 I put all of my money and effort into income property...

I figured early on that I needed to develop an independant financial plan and took the plunge buying my first home at age 22, the year I earned my engineering degree... also a time of record unemployment. Though property values fluctuated... rents have remained constant and I've done well by holding it.

In retrospect, I should have kept with my original plan... because those first 10 years investing gave me a solid footing.

Becoming an employee was also great for the first 10 years... the last ten years not so much.

Back in the 90's... the benefits of working in a Hospital environment were pretty amazing... just about everything I signed on for no longer exists... family medical, stock plan, 401k match, profit sharing, 5-year sabaticals, tuition expenses, incentive programs, etc...

The cashing out vacation pay and losing sick leave is just the latest in a series of changes...

I mentioned to the Boss today... yes, we were both working on Sunday, the suggestions I picked up from TBN and her reply was she is just trying to keep the doors open and if a good offer comes along, I should take it because it is anyone's guess how much longer this business model will survive with all the changes hitting health care.

Small independant hospitals are going the way of the dino... all that will be left are the big players when the affordable health care act is fully implemented.

Without question... my original instincts regarding Real Estate and working for myself would have proven much more lucrative...

I know it's not any help, but that is pretty much the way manufacturing has gone. Back in the mid 70's, I was making $8 per hour, as a helper in a non union tool and die shop. 35+ years later, workers are making 8 or 9 per hour? When I started out, my journeymen were making enough to afford second homes, cool cars, and a couple owned airplanes. The new guys can't afford to pay attention.

 

[ultrarunner]

Must be time for Joint Commission. Since they now show up without warning maybe they will show up before you need off.

Bingo... all we know is we are due.

 

[ultrarunner]

I know it's not any help, but that is pretty much the way manufacturing has gone. Back in the mid 70's, I was making $8 per hour, as a helper in a non union tool and die shop. 35+ years later, workers are making 8 or 9 per hour? When I started out, my journeymen were making enough to afford second homes, cool cars, and a couple owned airplanes. The new guys can't afford to pay attention.

I did work almost 2 years in a Union Shop making components for the Space Shuttle and was on the shop floor the day the shuttle exploded... I was earning $12 and hour which was very respectable plus benefits... at that time it was 7 years to become vested... after the shuttle went down, that project faded and I started renovating residential property...