Should I cash out my pension?

On October 18, 2020, Posted by , In Benefits,Retirement, By , , With Comments Off on Should I cash out my pension?

Last time we talked about why you can’t peer into the future, to see what the value of your lump sum payout would be if you retired on a certain (post-November) date. This time we’ll talk about why you might or might not want to cash out your pension, based…

Did my employer remove the lump sum pension payout option?

On October 18, 2020, Posted by , In Benefits,COVID-19,Retirement, By ,, , With Comments Off on Did my employer remove the lump sum pension payout option?

If you’re planning to retire at the end of this year, and your pension has both an annuity and a lump sum payout option, you may be confused as to why you can’t look at the lump sum value for your planned retirement date. First, some background. A 403b or…

Is it a bad thing that my employer is refusing to participate in the payroll tax deferral?

On September 13, 2020, Posted by , In Benefits,COVID-19,Taxes, By ,, , With Comments Off on Is it a bad thing that my employer is refusing to participate in the payroll tax deferral?

So first, what is this payroll tax deferral? As part of the CARES act for economic relief during COVID-19, employers can choose to not withhold employee contributions to Social Security (6.2%) or Medicare (1.45%) for some employees, for a while. Is it a bad thing if my employer is refusing…

What is a 403b/401k “true up”?

On August 26, 2020, Posted by , In Benefits, By , With Comments Off on What is a 403b/401k “true up”?

One of the nice benefits of your employer’s retirement savings plan (403b/401k) is that it likely includes a match.  That’s free money your employer contributes, assuming you’re also putting in your money (like 4%). How you elect (=declare to your custodian) the money you are contributing to your own portion…

My employer is resuming our 403b/401k match, what do I need to do?

On August 26, 2020, Posted by , In Benefits,COVID-19, By , , With Comments Off on My employer is resuming our 403b/401k match, what do I need to do?

If your retirement contribution match was suspended earlier this year due to COVID-19, it’s possible that that match is resuming, as some companies are feeling more stable on their financial footing.  Remember that your employer match is essentially free money that gets put into your retirement account by your employer,…

Bi-weekly pay and 3 paycheck months

On June 29, 2020, Posted by , In Benefits,Savings, By , , With Comments Off on Bi-weekly pay and 3 paycheck months

There are many payment models for employees, everything from ride share’s flaunted “cash out up to 5 times per day!” to getting paid once a month is common. In between is getting paid bi-weekly. That usually means getting paid twice a month. But every approximately 6 months, an extra payday…

COVID-19 triggered mid-year benefits changes

On May 13, 2020, Posted by , In Benefits,COVID-19,Taxes, By ,, , With Comments Off on COVID-19 triggered mid-year benefits changes

One of the common questions I’ve been hearing lately is “I planned for XXX expensive, semi-elective surgery this year. Due to COVID-19 that surgery can no longer be done in 2020.” Or “I planned for XXX expensive, semi-elective surgery this year. Due to COVID-19 I can’t have that surgery right…

April showers bring May …. 457b enrollment

On May 2, 2020, Posted by , In Benefits,COVID-19,FAFSA,Open enrollment,Social Security, By ,,,, , With Comments Off on April showers bring May …. 457b enrollment

Welcome to May! I am a big fan of flowers, so I love May Day. But besides flowers, if you work for a non-profit whose 457b cycle is on the half-year, then May Day also brings the start of a special benefit open enrollment period for highly compensated employees. Wait…

Unemployment and Social Security

On May 1, 2020, Posted by , In Benefits,COVID-19,Social Security, By ,, , With Comments Off on Unemployment and Social Security

The question I was asked today was about someone who was furloughed, and age 65. They were told to apply for Social Security when they applied for their unemployment benefits. Questions were whether this was a good idea in general, whether it could be made a good idea by taking…

Unemployment Insurance during COVID-19

On April 13, 2020, Posted by , In Benefits,COVID-19,Taxes, By ,, , With Comments Off on Unemployment Insurance during COVID-19

Involuntary furloughs are coming. As we start talking today about one of our country’s social protection systems, unemployment insurance, let me lead with 3 very important points. First, unemployment insurance varies GREATLY by state, there is no national standard. Second, if you don’t qualify for unemployment by your state’s standards,…