How will taking a pension hurt unemployment benefits?
Today 5:30 AM
Q. I’m collecting unemployment benefits because my job cut my position because of COVID-19. Now my ex-employer wants me to take my pension in one of two ways: a lump sum or monthly. Will this stop my unemployment benefits if I accept either one? Not working
A. We’re sorry to hear about your job loss but it’s good to know you will have pension income in your future.
When you receive pension income, it is possible that your unemployment claim will be affected.
Your claim may be reduced by either 50% or 100% of your weekly pension amount if you are receiving a pension from the employer that your unemployment claim is based on, said Ken Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.
Currently, heirs may defer taxes on inherited home gains until they sell the property.
They also secure a so-called step up in basis, which adjusts the home s purchase price generally to the value on the date of death.
According to the Joint Committee on Taxation, the current law saves taxpayers $41 billion per year.
By comparison, Biden wants to treat home inheritances like a sale, making the heirs pay for gains that occurred before they received the property.
The proposal includes tax exemptions up to $1 million for single heirs and up to $2.5 million for couples, a White House fact sheet outlined Wednesday.
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What should I do with this retirement account that I don’t need?
Updated 9:30 PM;
Q. I’m 55 and retiring in November. I have a 457 plan worth $75,000 that I will have to reinvest. I don’t plan to use this money immediately because I have other retirement funding. What should I do? In the money
A. Congratulations on your upcoming retirement.
Before considering your options, it’s important to understand the type of 457 plan that you have, said Kenneth Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.
If you have a governmental 457(b) plan, you will have the option to roll over your account to a traditional IRA, he said.