If you're eligible for retirement (or early R -55+), and you take the severance package, do you forfeit pension money? Can you take severance and retire?
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I retired last year. While on the phone with my personal Fidelity advisor (separate from our 401k, he brought on a 401k specialist and they talked to me about a significant tax advantage called NUA (net unrealized appreciation). Talk to them before you transfer, cash out, sell or move any money in your 401k, especially Elevance stock as you could end up paying a lot more in taxes. It’s a twice in a lifetime opportunity to save big on taxes (when you die is the other one).
If you get Riffed and at retirement age, take your severance money first … once that is done, file for unemployment money based on what state you live on I believe rules may be different. The. Once that is done, then think about taking your pension or delaying it a bit .. I think u may have until your 70 years old until you need to take it. There is also the Social Security money you can start collecting at 62 if you wish. Lastly, make sure you transfer any 401K money you have in Elevance to a Roth IRA or some other thing but whatever you do don’t leave it in Elevance.
Don’t worry too much, coming from someone who went through all of this … there is life after this awful company and you will be more happy spending your retirement with your loved ones. Good luck 😊
If you retire, and take severance, you will not forfeit pension. (The pension plan stopped a while back, for those that had it your money continues to accrue interest.) Talk to your tax advisor about how to take the pension.
Per a trusted source, if you retire at layoff, you will not get the severance.
3 years ago, if you 62 or going to be 62 during your severance period there were different rules to the severance (like you did not have to file for state unemployment). Guessing this is to avoid potential age discrimination issues.