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Old 06-03-2016, 09:18 PM   #61
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Originally Posted by supernova72 View Post
OP here: You know I just double checked. Retiree medical is $37 a month for our "Traditional" Plan ($300 deduct, $30 co-pays). If I stay on the plan I have ($0 a month but $1300 deductible) I'm responsible for the $1300 deduct. Currently the company seeds that with $1025 contribution which will go away as a retiree.

Need to weigh the two plans and so my best to max out my HSA for the next two months.
Sorry for the late reply Supernova, but in a very similar circumstance to your own I found it worthwhile to remain in the HDHP for the year in which I'd be receiving severance (to retain the tax deduction of the HSA). In subsequent years when AGI and tax bracket will be much less I will switch to the Traditional Plan to lower the deductible.

In any case, since you will remain on active employee medical until the end of the month following your layoff and then get 3 months of free Cobra courtesy of the big B, it will be almost the end of the year until you need to commence retiree medical - so the rate you'll pay for the HDHP this year is almost moot.
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Old 06-04-2016, 12:30 PM   #62
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Join Date: Apr 2012
Location: Seattle
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Originally Posted by stepford View Post
Sorry for the late reply Supernova, but in a very similar circumstance to your own I found it worthwhile to remain in the HDHP for the year in which I'd be receiving severance (to retain the tax deduction of the HSA). In subsequent years when AGI and tax bracket will be much less I will switch to the Traditional Plan to lower the deductible.

In any case, since you will remain on active employee medical until the end of the month following your layoff and then get 3 months of free Cobra courtesy of the big B, it will be almost the end of the year until you need to commence retiree medical - so the rate you'll pay for the HDHP this year is almost moot.
Thanks Stepford. I still have a bit of time to decide on which plan to chose and appreciate the feedback. The cobra part is confusing to me on why I would go that route if I "get" retiree medical starting September 1st 2016? I have an appt setup to go over options in early August. I like the HDHP I have now yes but was not sure I could "switch" in 2017. I need to check up on that. It appears the Traditional plan makes more sense after this year ends. It's my understanding that the HSA can be used on either plan for medical related costs.
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Old 06-09-2016, 12:20 PM   #63
Recycles dryer sheets
 
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Somewhat anticipated but still internalizing what my next steps are. I work in an aerospace industry in an IT organization. Megacorp (160,000 employees).

IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg.

It feels weird since I've never been "laid off" before.

About me.

55 yrs old
single
750K in 401K
pension (non cola) at $3100 a month (can draw after my layout benefit ends in 6 months). I can also take a lump sum on the six months pay.
expenses are 60K a year
After final check July 22nd will owe 125K on home (valued at 535K). No other debt.

Feels weird but to be honest was pretty burned out. We've had 3+ yrs of reductions. My background is IT Finance and IT Service Delivery mgmt. I achieved a "level 5" status which is high in my field. I might pursue contract work. Seattle WA is a pretty hot market right now (where I live).

Two undergrad degrees and one masters (TMBA)

I get retiree medical at a reasonable rate ($70 a month).

Cheers.

OP here. I had a couple of errors in my original post so I fixed/updated those (in bold or strikethrough)
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Somewhat anticipated but still internalizing what my next steps are. I work in an aerospace industry in an IT organization. Megacorp (160,000 employees).

IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg.

It feels weird since I've never been "laid off" before.

About me.

55 yrs old
single
750K in 401K (now 770K)
pension (non cola) at $3100 a month (can draw after my layout benefit ends in 6 months). I can also take a lump sum on the six months pay.
expenses are 60K a year
After final check July 22nd will owe 125K 122K on home (valued at 535K) 539K. No other debt after I pay off car with sick leave and vacation payout.

Feels weird but to be honest was pretty burned stressed out. We've had 3+ yrs of reductions. My background is IT Finance and IT Service Delivery mgmt. I achieved a "level 5" status which is pretty high in my field. I might pursue contract work. Seattle WA is a pretty hot market right now (where I live). Strongly considering going back to work after a month or so of de-compression.

Two undergrad degrees and one masters (TMBA)

I get retiree medical at a reasonable rate ($70 $46 a month) OR stay on my current high deductible plan at $1300 with no co-pays or monthly premium. Still figuring that part out.

Cheers.
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Old 06-09-2016, 06:58 PM   #64
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Congrats! Yes some short term stress but it will pass. You will probably go thru some various phases and emotions however on the other side you will set back and be like what was I worried about.

JDARNELL
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Old 06-09-2016, 09:00 PM   #65
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Location: Diablo Valley (SF Bay Area)
Posts: 836
Supernova, check whether you can get UI. it's my understanding after UI called me that you can get it if it's just a return of your $$s (401k or 457). I was told in 2013 that even I could get it as I contributed that paid up deficit b4 initially leaving gov't work in 2004
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Old 06-10-2016, 01:03 PM   #66
Recycles dryer sheets
 
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Originally Posted by JDARNELL View Post
Congrats! Yes some short term stress but it will pass. You will probably go thru some various phases and emotions however on the other side you will set back and be like what was I worried about.

JDARNELL
Thanks! Hoping my BP goes down a few ticks and maybe get off those meds
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Old 06-13-2016, 10:00 PM   #67
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Location: Diablo Valley (SF Bay Area)
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Supernova, check whether you can get UI. it's my understanding after UI called me that you can get it if it's just a return of your $$s (401k or 457). I was told in 2013 that even I could get it as I contributed that paid up deficit b4 initially leaving gov't work in 2004
Apparently the new online certification UI process has changed. I listed my pension & the fact that I contributed to it. I do want to add that it asked if I worked for that employer in 2015 (I didn't so eligible)
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Old 06-14-2016, 12:02 PM   #68
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Join Date: Apr 2012
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[QUOTE=stepford;1740243]Sorry for the late reply Supernova, but in a very similar circumstance to your own I found it worthwhile to remain in the HDHP for the year in which I'd be receiving severance (to retain the tax deduction of the HSA). In subsequent years when AGI and tax bracket will be much less I will switch to the Traditional Plan to lower the deductible.

In any case, since you will remain on active employee medical until the end of the month following your layoff and then get 3 months of free Cobra courtesy of the big B, it will be almost the end of the year until you need to commence retiree medical - so the rate you'll pay for the HDHP this year is almost moot.[/QUOTE

Thanks Stepford. I did verify that I can do the 3 months cobra and then stay on the HDHP and change from yr to yr during the open enrollment period. That was good news. I plan to do what you did and remain on the HDHP this year.

I need to figure out if I can plow more $$ into the HSA without going broke with just 4 paychecks to go
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Old 06-30-2016, 04:33 PM   #69
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by supernova72 View Post
Somewhat anticipated but still internalizing what my next steps are. I work in an aerospace industry in an IT organization. Megacorp (160,000 employees).

IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg.

It feels weird since I've never been "laid off" before.

About me.

55 yrs old
single
750K 770K in 401K
pension (non cola) at $3100 a month (can draw after my layoff benefit ends in 6 months). I can also take a lump sum on the six months pay.
expenses are 60K 78K a year
After final check July 22nd will owe 125K 121K on home (valued at 535K 565K). No other debt.

Feels weird but to be honest was pretty burned out. We've had 3+ yrs of reductions. My background is IT Finance and IT Service Delivery mgmt. I achieved a "level 5" status which is high in my field. I might pursue contract work. Seattle WA is a pretty hot market right now (where I live).

Two undergrad degrees and one masters (TMBA)

I get retiree medical at a reasonable rate ($47 a month).

Cheers.

I've had some time to re-visit my numbers above from my OP. I had a major error in expenses. The "60K" was without my mortgage of 1530 a month or 18K a year. Oops.

There is a 10% cushion in there but I was still very understated expense wise. I had assumed a house payoff in one of my spreadsheets. Sorry for the inaccurate post.

I updated some of the other values as well. Looks like I might be looking into at least part time work if not FT contract work. Could be worse....
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