Posted on 11/15/2024 8:32:44 AM PST by mikelets456
Hello All, After 38 years at my company, I was laid off today. I have never been jobless since I was 14 years old. I could really use the input from you all here---about applying for unemployment, sites to look for a job, what to expect, how to use or invest what I have---here are some items I need help on handling--a side note I'm 57 YO:
1--I took a 401K loan as we had a few rough years and had to pay off some debt. How do I avoid the taxes and defer to the following year? 2--Should I wait for unemployment (to file)? 3--What is a good site to post my application? 4--By law, how long do I have to keep health insurance? I have a neurological disorder. 5--Any other advice.
(Excerpt) Read more at nerdwallet.com ...
As far as job sites, LinkedIn and Indeed are the leaders. Get current with your resume and post there there, and keep them visible.
Tax preparer could better help you with tax law questions, but my understanding is that loans aren’t taxable income.
Good luck on a new job. Age discrimination is rampant.
Don’t know about your state, but Florida you have to wait 2 weeks to file unemployment.
As for the 401k loan:
https://www.fidelity.com/viewpoints/financial-basics/taking-money-from-401k
https://www.irs.gov/retirement-plans/hardships-early-withdrawals-and-loans
Sorry to hear that. I can speak a little to the health insurance part. I’m retiring on 1/8, and I was told that my health insurance expires on my last day of employment. I think the end-of-insurance is a company-by-company sort of thing, so your HR should be able to provide the details. Under circumstances such as layoffs, they may offer something different. Anyway, best of luck in finding something else; looking in your late 50’s after 38 years is unpleasant, but it could lead to something great.
Cobra can extend healthcare... but you would be paying 100% of premium...
If you were the soul earner... Obamacare might be available at no or little cost...
You ain’t kidding.
I was going to comment but I will wait and see what other may advise ( I was 59 when my company was bought by another company and I was let go so I know what you are feeling)
Buy the book Job! by Rick Gillis. It’s amazing. Do exactly what he says. You can even send him your resume and he’ll review it for you.
If the 401k loan isn’t paid off the balance is taxable. Not sure if it is at the rate for the age today or when you took the proceeds (10% penalty if you were under 55-1/2).An online search should help. Agree LinkedIn or Indeed are the best job search sites out there.
I think he was asking in the event he cannot keep up with the payments. If that is the case, his loan would be considered a distribution, and that would be taxable plus a pretty significant penalty.
He should absolutely go to a tax accountant. It might be worth trying to keep up the payments for at least until he is 59 1/2.
I know this might sound odd.....but there is work for those willing to work and especially those not to proud to ‘start near the bottom’. Linkedin is a good place to go look, be open minded. There are so many ‘young’ and useless people out there, that a good work ethic and flexibility will be rewarded.
Answer to your second question is No. If you have not filed already you should.
Number three is tricky, it depends on your field. I would personally suggest putting your resume in with every employment agency you can find. You can pick up contract work to keep you going and make contacts that will help you find a new position.
Answer to number four is it depends on your termination agreement. Is the company going to give you any sort of grace period on your insurance? But after that six months of COBRA is normal.
Now, go through your termination package with a fine tooth comb. Some of your answers are probably in that. But do not do it today. You have had a shock and you are going to miss things. It is even fine to take the weekend to adjust. But Monday you are going to have to hit it.
Get up at your normal time and treat all of this like a job. You may only be unemployed a week or two but you need to get all your ducks in a row and quacking in harmony.
Best of luck.
> Age discrimination is rampant. <
I’ve bumped into that as well. I’ve read that part of the problem is the age discrimination laws meant to protect older folks.
According to that article, those laws make employers reluctant to hire older folks. You can easily fire a new 35-year-old employee who is underperforming. But fire a new 50-year-old employee, that can lead to an age discrimination lawsuit.
Better to play it safe, and just hire the 35-year-old.
Talk to HR about an enhanced severance package, in exchange for not threatening an age discrimination suit. Be subtle. If your performance is not an issue, and it is not a department elimination, you have some leverage
A 401k loan becomes a distribution if you don’t pay it back when yo leave the company.
It doesn’t help you any, but I am truly sorry that happened to you.
I think you can roll the 401K over to a Roth IRA and you shouldn’t take a tax hit on it. If you cash it out, it will hurt you on taxes.
Depending on how much you made, you might be able to pull the max from state unemployment, if the jackass company doesn’t contest it.
Hate to say it, for healthcare you may just have to use Obamacare. Not that you are unemployed, you should get a good rate.
Just do a google search for job sites, Indeed is one, monster another. My state has a job board, so you might check there.
FR probably has a considerable wealth of knowledge and probably more accurate then me.
Good luck, at least with Trump being in power maybe more jobs will become available.
I found over the years that the best way to get a new job is to reach out to other people that you have a relationship with in your industry. Or go to a head hunter.
Since a 401k loan is really just you loaning your money to yourself there’s probably some hardship thing you can use to get around repayment.
The insurance coverage is probably going to be extended through cobra but I’ve heard its costly.
1. Talk to a tax professional regarding the 401K
2. Post your resume, don’t expect much
3. Don’t take any of the “tests” on Indeed, they stay on your profile!!
4. Depending on your skill sets, start a consulting business, or any business of your own. Try a YouTube channel showcasing your knowledge set.
5. Now is a great time to think outside the box you’ve been in for 38 years. Congratulations on that too.
I started a pet sitting business in 2010, now run a six-figure business company in Cleveland, Ohio. As well as having written a decent performing book on Understanding Cat Behavior. In my previous life...I was an EHS Field Manager decommissioning nuclear reactors.
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