Severance + retirement
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401(k) Rollover Traps After a Layoff 2026: Edge Cases That Cost Five Figures
An indirect rollover turns a $100,000 401(k) into an $80,000 check and a 60-day deadline. A catalogue of the separation mistakes that cost five figures: the 20% withholding shortfall, the one-per-year rule, the SIMPLE-IRA 25% penalty, forfeited Rule of 55 access, and the 457(b) trap.
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Severance and Social Security 2026: Timing, Earnings Test, and SSDI Interaction
Severance pay interacts with Social Security in three different ways depending on whether you're collecting retirement benefits, applying for SSDI, or simply paying into the system. Here's how the rules apply at each stage and where the timing actually matters.