I was let go today after being with the bank 14 years. Curious if I was targeted to prevent a potential much bigger severance at 15 years.
Is there a way to change withholding to have less taxes taken out of severance?
Although I'm not surprised because I've watched things change for the worse. But I didn't see it coming because there are other job openings in my department. Same old sad story of a decent employee who thought they'd retire with the bank.
Hang in there. Better days are ahead
@dj If you’re a retiree (you left the bank in good standing, at age 55 or older, after 10 or more years of service), you’ll continue enjoying special benefits on a Bank Smartly® Checking account or Platinum Business Checking Package.
You’ll also have access to many of the same discounts on other products and services – such as loans and lines of credit – we offer employees. If you have an outstanding loan that was processed with an employee discount, the current interest rate will continue for the life of the loan.
https://www.usbank.com/about-us-bank/alumni.html#workday
FWIW Post-termination you can still make direct contributions with after-tax dollars to your HSA as long as you are still covered by an HSA-qualified High Deductible Health Plan.
Those contributions are then deductible on your tax return (Form 8889 with your Form 1040), giving you the same tax benefit you would have received through payroll.
It’s getting to the point that severance could be paid in 2026. Sometimes you get a couple months getting paychecks then severance is offered. I think you have 45 days to accept it after that. That would put lump sum into 2026.
If you think severance and lump sum is this year, front load 401k and HSA as fast as you can. 75% of check can go into 401k. Have spouse do same. HSA can also be accelerated.
Might be some other ways to reduce taxable income.
Grade 15 and above receives 6 months of severance, full bonus for the year, and instant vesting of any restricted stock.
@OP I am so sorry to hear this news. Severance taxes are based on the state you are working in and where you live. I would talk to your tax advisor to understand the best way to handle as it is based on your individual situation
@dw What grade are you?
OP I’m sorry. Can you share what severance you did receive? I’m nearly 14 years on and am planning on retiring next year anyway so honestly am hoping I am laid off with a severance package. I’m not going to work to 15 years though just to get a bigger deal. Best of luck to you younger folks.
I’m in a position to retire now. Sudden investment windfall.
I would gladly take the severance so a younger person can stay.
Asked boss. She said I am too valuable and that decisions are made at a higher level. I won’t quit, but will do minimum to stay employed. Each paycheck pumped 100% into the market.
Voluntary buyout would help bank immensely.
@OP I left after 15 years before I gave them the satisfaction. Found a good company that actually appreciates their loyal employees. I saw the writing on the wall at first town hall.
We had people working 20+ years at our location who were just let go as well..no party, gratitude, just an end date.
Do anybody know if they get the retirement perks if laid off at the retirement age? Or just thrown out on the street?
So sorry OP. I’ve been with te bank over 15 years. So much gas changed during that time. I am constantly worried about layoffs as I figure they’ll layoff the people who’ve been here the longest. I’ve seen people laid off less than a year from retirement and who served 20+ years. It’s a brutal thing for them to do. Also doesn’t help that I’m in a remote location and not near any hubs. Wishing you all the best and hope you find something better.
Mortgage world was hit wit layoffs yesterday- Missouri
OP - sorry! Wishing you a better job and a place that is worthy of your time.
Same happened to me at 22 years. So sorry, hopefully you find something that is not in banking or perhaps where you can compete with these jokers and help show their true colors.
I was not given a choice on the amount of taxes taken from the lump sum severance check, however l did receive a healthy refund from taxes the following year.
Also depending on your state, you can draw unemployment after your last day and pay for vacation. HR tried to scam people into saying they couldn’t get unemployment because that is a MN thing. In many states, you can start your unemployment quickly. Take them for every dime of it. Good luck.
Sorry, OP. I hope you find something better. Which department?
Banking is quite vulnerable it seems. No one needs to go to the bank lobby anymore and all online. Can be done overseas. World is changing most rapidlÿ
I'm sorry OP 😩. What area were you in?
I can't answer questions about the severance though, sorry.