If I get RIFd, I'll have a few months of severance pay and have some questions on that. I have 401k money deducted from each check, will that automatic deduction continue through my severance pay period or do I have to pay directly to Fidelity? Same for HSA. Will the automatic deduction continue through my severance pay period or do I need to contribute money directly? Last, is severance pay taxed at the same rate as my current pay, or is taxed at the higher rate like AIP payout?
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You can roll your 401k to an IRA and I believe there are no taxes involved as you’re not withdrawing the money.
I am just under 2 years here
About how many weeks is that of sup pay?
I was laid off last October and had an HSA plan. My HSA deductions continued during my "severance" / SUB period when I was receiving health insurance coverage until it ended.
After I was laid off, I participated in open enrollment to select benefits coverage.
No, you no longer have 401k deductions or a match from your supplemental unemployment benefits (SUB) payments.
@lyq+1tOQPlI4 is correct,
- money will not be deducted
- you would have to change your account with Fidelity, if you wanted to contribute as an IRA (there are tax rules that may prevent that)
- the rate should be the same, depending upon how much you "were" putting into the 401k
- you will get medical/dental/vision insurance through the SUP/severance period for the current price (perhaps the price would change after 1/1 if your SUP/severance lasts through that)
I have wondered about the HSA. Logically it would seem if you have to pay, the deductions would continue. But logic does not always apply with the elephant.
Given that I will be asking
- about contributing to HSA?
- what happens with open enrollment?
- will my cost adjust come 1/1?
Good luck to all!
Money will not be deducted for 401K. I'm not sure you can contribute to it if you are not employed at ELV. You may need to move it to an IRA in order to contribute. If your severance amount is same as your salary it will be taxed at same rate.
Great questions!! So sorry I don't have the answers, but if I can find out, I will post on this thread what I find out. Honestly, I didn't even think of the 401k question...but I will see what I can fi d out on this.