Thread regarding Sears layoffs

I looked at my paper work and it only states how much I would be getting on my severance. Glad I kept my paperwork. The store closing paperwork had the infor about medical and 401(k), but that was dated 2016. Oh well. I am a unemployed worker. Getting UI Benefits

Look out! Be careful! If you signed severance paperwork that said they could take out your health insurance premiums and they did not take it out then they gave you the insurance premium money in your check. When you cashed that check you took constructive receipt of those health insurance premiums. Even though they may have screwed up they can come back and bill you for those health insurance premiums, especially if you have gone to the doctor or gotten meds. I wouldn't put it past Sears to do so. If they do bill you or want it back call your state labor board or labor commissioner. Watch out! Been there with another company.

1hjz: I signed my severance paper work on my last day of work April 2017. If your happen to get a copy of the store closures manuel from Sears, it will explain everything. The truth, they did not take out 401(k) at all. They were suppose to take out health insurance but they did not, I thought they were going to take out the insurance. I had health insurance for all of my severance pay 8 weeks. I continue to get my meds, and went to the doctor. No bill, paid the standards ded for my meds. I thought I had to pay for my insurance also. Right know my associate discount is gone. I am a retiree, I should still be getting my discount/points. I think the people at Sears, do not know what they are doing.

Keep in mind you said that they don't deduct 401k...I replied false to that because it was false...now, as for the rest I'm not sure...I don't see how an HR rep can make decisions for the investment company and tell you to move your money out of their company. That sounds weird.

Also you didn't pay for health...I have to ask did you have health after that? I've never heard of free health unless it was union.

As for the # of weeks severance what can I say? It's Sears,

On my severance, I did not pay for health insurance at all. Saved me over $500.00 a month, included my spouse, and i still had health insurance. They did not take out for my 401(k) it stopped as soon as I was on my 8 weeks of severance pay. I was a store employee for over 18 years. I do not think it is far for the HE associates to get more severance than the store employees. But I did get a break with the health insurance. Nothing that I am saying is FALSE.

Forgot to mention I called benefits and they told me specifically that 401k was still deducted. I worked at corporate so maybe that was the deal? In any case, I'm glad it's structured this way. I can no longer get a tax break on my traditional IRA so this is the only way.

Sears may be playing fun & games depending on how the severance package is worded.

Technically with a severance package you are no longer employed by a company but as stated in a prior posting state tax breaks may come into play so a severed employee could conceivably be kept on the payroll to continue receipt of the breaks

@pib

Not necessarily false. I was getting severance for 10 weeks (after only being at HE for a year - sorry @yxm) and while health insurance was deducted, I was told specifically that 401k would not be (and it wasn't).

Or else I was never laid off and haven't been going in for the last month and getting paid for it.

False...I've received two severance checks and both 401k and health were deducted. Apparently I'm still on Sears payroll as I checked my status was listed as active until the severance runs out.

If you are on severance they will not take out for the 401(k) withdrawals. I worked at the stores, you may have worked at HE, but they did not take out for my 401(k). I only received 8 weeks of severance, I

was with Sears for over 18 years. I was told by a HR from my District to take my money out. I took at all my funds, transfer to a rollover.

Your 401k is safe unless you have less than a certain dollar value in it - then you are required to transfer or cash out your 401k as part of the severance agreement. I rolled it into another 401k I had, no big deal. But be aware of your options, and review the areas the SHC 401k is investing. You may want to move to get a better return with another investment package.

Thanks all for the advice. I likely will take advantage of the remaining tax break through my severance then transfer it to my other accounts. In fact I increased my contribution to the max as it's going to end anyhow and don't need a full paycheck.

Its nearly always, but not "always always" a good idea to roll your employer provided 401(k) to a reputable investment elsewhere as most employer provided plans are way too limiting.

Make SURE you know what you are doing! DO NOT WITHDRAW FUNDS! You want to do a tax deferred rollover from one to the other otherwise you'll pay taxes and penalties now on the whole thing vs paying the taxes when you withdraw over time after retirement. A good investment adviser will walk you through this. Heck, even a bad adviser should be able to.

Your 401k is completely safe; the assets in your 401k are owned by you, not SHLD. The only way a SHLD liquidation would affect your 401k is if you hold SHLD stock as part of your 401k investments.

When faced with this decision last year, I decided to transfer my 401k holdings to an IRA account with another firm. This eliminated the hold on my funds till age 70, lowered my account management expenses and provided me with a broader range of investment choices. The process was handled by the firm I chose and took about 40 minutes.

Thank you...I was pretty certain that was the case. I have accounts with both Vanguard and Fidelity to move it into if I want but I've maxed out my IRA deductions so at least these last few paychecks will give me a last 401k deduction. And it really has done pretty well for me...frustrating to think how much better it would've been with matching contributions but the tax benefit was worth having it.

your 401k is safe - if laid off you can keep it with AON or you can transfer it to any other retirement fund provider you wish e.g. Vanguard, Fidelity or a brokerage firm, your bank etc... etc... - if doing a physical transfer just remember the 60 day limitation if your age is less than 59 1/2 and try to have the transfer done electronically without the funds being made out to you for a physical xfer - its ususally a pretty simple process and the company DOES NOT need to be involved as its YOUR money to do with what you wish

The rules may have changed slightly over the years but 18 yrs ago I transferred my 401k from my company's service provider ( Vanguard ) to my brokerage IRA account with no problem ( Vanguard was, and still is, great organization - I only did so to self-direct my own funds )