February 16, 2010
The logistics of retirement continues as I enter my last two weeks of employment at The Columbian. In the past couple of days I've learned that the IRS wants a 25 percent cut of any lump sum early retirement payout. I'll most likely get a refund next year, but I hate giving the government more than it deserves sooner than it deserves it. Neither can I put any part of the severance money into my 401(k). To counter balance that situation, I upped my 401(k) withholding on my remaining regular salary to 60 percent. The good news is that I can buy health care insurance through COBRA, the government mandate that allows me to continue to purchase coverage from Regents Blue Cross, The Columbian's insurance provider. And because of a a more recent Obama administration ruling, I will be able to purchase this coverage at a discount because the feds will reimburse my soon-to-be former employer for the difference. All good. For answers to questions about COBRA, visit this U.S. Department of Labor Web site here
