Thread regarding Wells Fargo & Co. layoffs

I just yanked my 401k and cashbal plan. Was able to do both over the phone with my broker in my new office with me. I waited until after the 60 day notice. You are still technically their employee until the severance kicks in. There is life after WF and the grass is greener!

@a2+1jv7rbst4 They said they're 60 so no penalty applies.

You're going to need to wait until you're on severance b/c you're an employee still during your 60 day notice. I assume with that many years you have quite a bit in your 401k. Check on tax implications but it's likely your best bet is to roll it over into an IRA or roth IRA.

Laid off in April and severance runs through June 2026.
Be sure you research your tax implications if you double dip (salary plus income from a new job). With the unemployment I can collect and a large lump sum PTO payout, both considered additional taxable income, we will be ki-led on taxes if we have any additional income in 2025.

Interesting I saw the same post on three other Bank sites on this forum so I believe it’s the media looking for information

Like someone else said, apply for unemployment in your state but don't drag your feet in your job search. Unemployment insurance doesn't carry you forever. Apply for unemployment insurance and start your job search immediately!

Don't forget about your cash balance plan in addition to your 401k, you can roll that over too. I wonder how many people forget about their cash balance plan. The cash balance plan takes a little navigation to get/roll over but I'd get it out of there and roll it to Fidelity or another financial institution.

For a layoff, if you're not at least 55 years old, you'll likely owe a 10% penalty on top of any applicable federal and state taxes.

Sorry to hear that OP. At your age you have a lot of options. What you DON'T want to do is just sell all your 401k shares and "cash out" to a bank account. Alllll of that money will be taxed as income and you'll owe a fortune in taxes. Unless you're terminally ill or something like that, pulling all the $ out at once is pretty much never a good idea. Definitely get with a good advisor or just do a ton of research online. You have the time.

@b4+1jv7rbst4 - you don’t get matching unless you are employed as of Mid December, which he won’t be. Only those laid off in mid October would make that cut. So matching is out the window for anyone else,we lose all that opportunity once laid off before these dates. So actually you want to consider should you redirect your contributions elsewhere such as to your pay check to bank and invest or do something else given you’re no longer in the 401k for 6% match opportunities

You do realize you won the relative lottery right? There are people with many years of service will not get de-org’d.

Congrats on 23! I made it to 21 and was displaced. FYI: You get the matching through your 60 days, plus your PTO payout check just after, IIRC, so don't rush to pull that out.

I left mine with Empower and honestly, it's done very well since, so I've struggled to put it somewhere else.

Find a new role ASAP and start double-dipping as long as possible. It's life-changing to double up for months on end! 😁

Yeah, lots going on. Talk to CFP (certified financial planner, who are fiduciaries not sales people) before doing anything. And holy C-R-A-P-- 23 years has to be a very nice severence, my friend.

I was told it was to create efficiency not part of location strategy, but you are being displaced. I am in Charlotte, part of location strategy. There are at least two people on my team who work remotely and receive higher salaries. Why was I displaced and no other we-pon on my team in Charlotte was displaced?

Welcome to the ranks of the displaced then retired WF group. Each year try something new, something you wouldn't have thought about while working. My focus is on helping people. Joined the Red Cross for local disaster support (volunteer), deliver blood to area hospitals (paid), donate plasma (paid), community garden for seniors (volunteer), SSA and Medicare seminars at churches (volunteer)...... Never went fishing a day in my life, now twice a week. There is so much out there.

Reply to my post in regards to just getting laid off after 23 years. I apologize for not adding I am 65 1/2 years old. But I do want to live on my severance until it expires next May2026. Then I want to apply for full benefits with social security. So I did sign up using the empower app on my phone to see what my 401k looks like currently. Thanks for all encouraging messages on this board. I am in a better position than a lot of people. And I won’t seek any new jobs until I get my full so benefit. And see what comes up, do something more meaningful with my life. Good luck to all. 😊

You can roll it over to an IRA as soon as your 60 day notice period ends. Just call Empower and request a rollover check.

Sit tight. You can leave it in the Wells plan as long as you want- you just can’t contribute to it. I have multiple 401k plans all managed by Empower so they are all under 1 login. Once you find something new, you can roll over to your new employer if you choose to.

It’s a lot to process. Take some time, detox and plan for better things to come. I plan for the day my name comes up. I keep picturing my fanny in a beach chair in my yard with a beer and a cigarette (I don’t even smoke but that’s the picture in my head 😊) I hope all goes ok for you!

Based only on what you have written, slow down a little bit. Your age is not 100% clear, but you may want to research the “rule of 55“ if you do need to get access to the funds in the 401(k). Otherwise you just roll it over to an IRA where you can get access to penalty-free money starting @ age 59.5 (same as with 401(k). Importantly, if you are going to trigger the rule of 55 and take some money directly out of the 401(k), you cannot move any funds to some other vehicle like an IRA before doing so, so do a bit of homework.

Talk to financial advisor about 'Rule of 55' IF you are 55 or older. Under Rule of 55 ('separation from service' in IRS speak) you can withdraw funds if you are unemployed either by choice or let go/fired/laid off/etc. WITHOUT PENALTY. But the funds MUST still be in the 401k of your employer at time of job loss.

If you have straight 401k funds to pull you will need to pay Federal taxes and state taxes, if applicable. Some states, like Iowa, have no tax on retirement funds.

If you have Roth funds, those funds will NOT have to pay taxes since you already did so when the deposit was made.

If you have both type of funds in your account, any disbursement will be paid out in the same ratio as 401k/Roth exists in your account.

I left $100k in my Wells 401k and put the rest into an IRA with Empower.

Woah.
Talk to your Financial Advisor before pulling money out of 401k. You might have to pay 10% penalty and taxes on top of that

Go thru Empower
Sorry you got laid off, esp after that long. :(
If you are going to go back into the workforce, don't wait too long to start applying. It is a horrific job market right now.