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Finance

NOTE: Nothing below should be considered financial advice. We have to say this.  Before you take any action, you should check with a financial planner, financial advisor, etc. on what actions to take. Some actions have tax consequences and this site cannot provide advice on this. Consult a tax planner before taking any action to ensure that you understand the consequences of your decisions and actions.


Intel Leaving Page

A good reference for you is the Leaving Intel webpage at http://www.intel.com/content/www/us/en/employee/leaving-intel.html. This page has information on all the different pay, bonus, stock, insurance, etc. procedures and deadlines.

Stock Shares

Stock Options

Stock options expire after you leave Intel. Check with your separation documentation for details. For the April 2016 action the employees have 90 days from the last date of employment (May 31, 2016) to exercise the stock options or they will be canceled. For retiring employees, there may be different rules so check the documentation you received to see if any stock option grants will have accelerated vesting.

Restricted Stock Units (RSUs)

RSUs that have vested are yours. You own those shares and may keep or sell them as you wish. Unvested shares are canceled. For retiring employees there may be different rules so check the documentation you received to see if any RSUs will have accelerated vesting.

Stock Participation Plan (SPP)

You will participate in any stock purchase program that happens before you last day of employment. If you leave before the purchase dates (generally February 19 and August 19) then you will receive a refund for monies withheld from your paychecks.

SERP 401(k)

What you contributed from your pay to your 401(k) account is yours. Intel contributions are handled in different ways depending on employment date. For employees hired after January 1, 2011 these contributions go into your SERP account. For employees hired before January 1, 2011 these contributions go into a separate profit sharing account. These contributions vest over a defined schedule and the employee is fully vested after seven years. See the separation documentation for details.

You have four options to choose from for your 401(k) account:
  1. Leave it with Intel/Fidelity
  2. Transfer it to your new employers 401(k)
  3. Transfer it to a traditional IRA or Roth IRA
  4. Take a lump-sum distribution
If you have less than $5,000 in your balance than Intel is legally allowed to close your account and send you a check for the balance. Otherwise, all the options are on the table.

The rules governing 401(k) withdrawals are complicated and interwoven with tax implications. There are severe tax penalties for early withdrawal from a 401(k) account. If you leave your monies at Intel then you can withdraw at age 55 but if you move to IRAs then 59½ comes in to play.

The consequences of a misstep are severe. Generally, unless you have a small balance and will receive a forced withdrawal, you should talk with a financial planner about what to do with such a check BEFORE you cash it.   It should be made out to your Brokerage, but FBO (for the benefit of) you.

Something to remember and consider is that Intel offers a BrokerageLink account for its 401(k). Intel has negotiated this with Fidelity and it gives you access to a lot of ETF, mutual funds, and bonds with minimal cost. You can pick funds with your financial planner and leverage the low fees Intel has negotiated. In many cases you can invest not only the funds you have contributed but also the profit-sharing monies Intel has contributed.

Medical/Life Insurance

HSA Contributions

HSA (Health Savings Account) contributions end with your regular paychecks. If you want to fully fund your account for the calendar year, you may make after-tax contributions to your account. Contact the bank that holds your HSA to learn more about this option.

Contribution and Out-of-Pocket Limits for Health Savings Accounts

For 2016
For 2015
HSA contribution limit
(employer + employee)
Individual: $3,350
Family: $6,750
Individual: $3,350
Family: $6,650
HSA catch-up contributions
(age 55 or older)*
$1,000
$1,000
* Catch-up contributions begin the year in which the HSA participant turns 55.

Life Insurance

In the Intel separation packet is a note about being able to convert to an individual plan within 30 days of your last date without a Statement of Health. If this interests you, follow up before the deadline. You can convert to term life insurance and have other options but only 30 days to make a decision, so review and decide quickly.

Unemployment Insurance Taxes

Note that unemployment insurance is taxable, but by default, taxes are not withheld. There is a form on the unemployment website that you can download, print, and return by mail to have taxes withheld.

Retirement

Minimum Pension Guarantee

Intel offers a minimum pension guarantee plan. This is for employees who meet retirement eligibility under any of the three definitions and who were hired before the plan was closed. The calculations are complex so speak to someone from Intel or Fidelity for details. You should also use your own financial advisor. The options you are offered may not be in your best fiduciary interest so have a third-party evaluate and help you choose from the options.

Sheltered Employee Retirement Medical Account (SERMA)

If you retire, Intel will open a SERMA account for you and deposit a contribution based on the number of years of service. You can use these funds to pay only the premiums for medical insurance. Intel will provide you with documents about your options for this account.

In short, HSA for Expenses.  SERMA for Premiums.

Financial Advice

Finance Education

You can visit www.sofausa.org to learn about finances. They host workshops and informational material.

There are many other Financial Education services around.  Look first.

Some off the shelf authors to start with: Dave Ramsey and his Total Money Makeover or the Financial Peace University series.  Also author Suze Ormen and The Money Tools.

NOTE: For any of these, check first at the Library.  Ask friends and co-workers.  Don't just settle on one until you have checked out a few of them first.  Here it is very important to GET MULTIPLE VIEWPOINTS!  

e.g.   "The last check you write, should be to your undertaker.  And it should bounce."   --from Die Broke

Finance Advice Contacts

If you do not have a financial professional to advise you and would like one, you can start your search at www.letsmakeaplan.org/choose-a-cfp-professional for one. This site will let you look for professionals by minimum account size, by payment methods (fee, commission, both), and location.

Tom Griffin at RBC is available if you want to talk to someone as a first step. His website is www.rbcwmfa.com/tom.griffin.

Another person to contact is Jill Kashiwago at Capitol Family Office. Her website with contact information is www.capitolcfo.com. She has provided information at group meetings on 401(k)'s and other topics of interest.

Andy Murphy from Morgan Stanley Wealth Management is another option. He is in Vancouver and you can reach him at 360-992-7980.


Last updated: 2017-03-13

7 comments :

  1. You should add in one more item for DCAP (Dependent Care Assistance Program) they will pay DCAP until the last check and that's it.

    ReplyDelete
    Replies
    1. All Intel provided benefits end with your last day of employment. DCAP is one of those. So are access to the fitness centers, legal insurance, life insurance, etc. Some can be converted and continued to an individual policy like COBRA for medical or term life insurance if you want.

      Delete
  2. correction to out of pocket HSA contributions after employment termination. All contributions to HSA, up to the maximum allowable limit are are actually tax deductible. You report your out of pocket contributions on your tax return to reduce your taxable income, as long as you have am HDHP medical insurance coverage.

    ReplyDelete
  3. Added table showing the maximum annual contributions allowed for individuals/Families covered under HDHP for a full year.

    ReplyDelete
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    ReplyDelete
  5. Remember though that you can't make any kind of contribution to your Intel HSA, pretax or posttax,if you are age 65 or older. Once you turn 65, whether you sign up for Medicare or not, you are considered Medicare eligible and can no longer contribute, even if you are still at Intel and on an HDHP plan.

    ReplyDelete
  6. Thank you for what you are doing, keep up the good works.

    ReplyDelete

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