I'm seriously considering leaving my place of employment for a job offer elsewhere.
My first question is I've taken out a loan on my 401K what do they do with that?
Second do employers still pay out for personal time off accumulated? I've accumulated over 300 hours and it would be very sweet to have that in cash for the transition. I know in the old days employers did that, but now with employers being stingy and taking away benefits I don't know.
Thanks to anyone that has had experience with this.
Can you take a paid leave to get your pto?A class mate lost 160 hrs when she went from a clinic our hospital runs to the ER. But did not lose seniority. Go figger. And the loan should just be a loan and be repaid as someone else said by you directly to the company covering your 401k. I never like the idea of the IRS looking to closely at my returns.
If you're looking for financial discipline, Dave is THE MAN. Most people would describe his approach as a "kick in the pants" but he knows his stuff. My parents eliminated all their debt but the mortgage in two years after following his advice.
I'm a member of his webgroup. Dave is a pretty sharp guy, he tells people, ''go ahead and try it my way for 90 days, if you do't like it go back to living in debt...'' his high horse approach sometimes rubs people the wrong way and he can be a little blunt but the thing is what he is saying is basically the truth he just doesn't try to sugar coat it. I remember he jumped all over this woman who didn't want to give up her lifestyle but was whining she was in debt. He asked her how much she made and she told him $30,000 a year. Then he asked her how much her car was and she said $27,000 and he was like....HELLO?????
Anyway, it is such a fun, inspiring show I think anyone who has never listened to him before should try it.
No, I don't take his every word for the gospel but if you are in debt and just starting out he can show you the way. He will definitely have some kind of impact on you if you listen to him, and it will be for the better. He also gives a lot of people advice on what to do about their retirement plans, etc....
this info should be available from Human Resources. They do not have to know why you are asking. In fact, our policies are online within the hospital network so we can review in private, if we please.
I'm seriously considering leaving my place of employment for a job offer elsewhere.
My first question is I've taken out a loan on my 401K what do they do with that?
Second do employers still pay out for personal time off accumulated? I've accumulated over 300 hours and it would be very sweet to have that in cash for the transition. I know in the old days employers did that, but now with employers being stingy and taking away benefits I don't know.
Thanks to anyone that has had experience with this.
You can make arrangements to repay your loan after leaving. Your personal time is another issue. It really depends on the policy at your facility. Most of the time they have specific guidelines. Example: They will pay you for 2 weeks worth but the rest is lost. Some don't pay any at all.
could i ask a daft question....whats a 401k loan...
I'll google dave ramsay to find out who he is!
Tweety... good luck with whatever you decide... but moving onto days .. bit of a change for you.. !
Karen
The simplified version. Here in America we are responsible for our own retirement funds or pensions, they are called 401K's (or 403ks). We pay into them what we choose and the money is invested or given interest, there are many ways. We can not withdraw the money before we retire without serious penalty. But we can "borrow" the money and pay it back with interest. Meaning we are borrowing from ourselves and paying ourselves back.
As a former manager and financial person, here's my 2 cents:
The employer won't care if you never pay back that 401k loan because, unlike a bank loan, its your own money that you borrowed and THEY have nothing to lose. You, on the other hand, may lose quite a bit, depending on the amount of the loan, and whether you're 100% vested or not. If you haven't been with the employer long enough to be 100% vested, they will take back whatever amount they've contributed to your 401k account. If you are not yet at retirement age when this is going down you have 60 days to pay all the money you borrowed back into the 401k account and roll it over into another retirement savings account, otherwise it is reported to the IRS as income and you will incur an additional income tax liability plus a 10% penalty on the loan amount.
Many people don't really understand how they lose out on these 401k loans when they change jobs. But, consider that you'll be liable not just for the principal but also for the interest on the loan amount. Therefore, you're going to have to use income that has already been taxed to pay taxes and tax penalties on money that doesn't even exist (the interest you're supposed to be paying back to yourself on the loan). This can get even more complicated, but if you haven't got the cash to put back into the 401k right now you could just let it go for now and prepare yourself to deal with the tax bill next April.
As for the accumulated hours, that depends on the employer's policy. My experience is that some employers have some type of forfeiture policy when it comes to accumulated hours for people who quit. This is especially true if the company uses "personal time" instead of "sick" and "vacation" time. Sick time is usually forfeited when you quit a job, but at least a portion of the vacation time is usually paid out.
dwainlou
22 Posts
Can you take a paid leave to get your pto?A class mate lost 160 hrs when she went from a clinic our hospital runs to the ER. But did not lose seniority. Go figger. And the loan should just be a loan and be repaid as someone else said by you directly to the company covering your 401k. I never like the idea of the IRS looking to closely at my returns.