Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-31-2010, 07:30 AM
 
2 posts, read 3,179 times
Reputation: 10

Advertisements

I've recently been diagnosed with a disease that is prohibiting me from doing my current job in a refinery. I will be going on LTD as a result of this diagnosis with my pay being reduced to 60% of my base pay. I will be 55 years old next year, I was thinking of tapping into my 401k to make ends meet as far as bills are concerned? Any suggestions?
Reply With Quote Quick reply to this message

 
Old 10-31-2010, 07:49 AM
 
5,976 posts, read 15,188,330 times
Reputation: 6709
Default No!

Don't do it. It is very tempting, and a common mistake many people make, just to realize it was not a good idea later. Of course, if there is NO other way to feed yourself, then you should do what you need to do to put food on the table, but do not do it out of convenience.

Never pay bills from a 401K if you've no income, just ignore the bills, they can be settled later. Most people that tap into 401Ks to pay bills already have affected their credit anyway, but a credit score is not needed to live. I would just tell the creditors what the situation is, and try to make a payment plan that YOU can meet, not their plan.

It is noble that you want to do what is right and pay your bills, but you need to put yourself and your family above all else, and whatever is left, they can have. It is a matter of prioritizing; it is your pride that causes you to put your creditors first, but you have to let your pride go in these matters.

Good luck.
Reply With Quote Quick reply to this message
 
Old 10-31-2010, 10:08 AM
 
Location: Dallas
164 posts, read 588,356 times
Reputation: 110
If you paid LTD premiums, you aren't taxed on the money you receive. Is your company providing you with any benefits? You will need to go on SSDI after your STD benefits end at 6 months. You need a disability attorney to make this procedure go smoothly thru Social Security. You need help getting thru this, it is a difficult and scary process, but once it's settled you will be fine. I used Alsup and I never dealt with SS at all. The 60% of pay us probably very close to your take home pay, unless you depended on OT and bonuses. Hire a professional, don't try this alone. Messageboards aren't always the best place for advice on life decisions like this. Oh yeah, try to keep that 401K intact.
Reply With Quote Quick reply to this message
 
Old 10-31-2010, 11:37 AM
 
2 posts, read 3,179 times
Reputation: 10
Default Thanks to All

My Company does provide benefits. I've been told that I will keep all my current benefits until I'm 65, including all Health care Benefits, also my time with the Company will still accrue while on LTD. The thing that scares me is the 60% of my base pay in which I will be paid after my STL expires.
My biggest dept is my House which I purchased 3 years ago. I'll just have to cut back on luxuries which should be no problem.
Thanks everyone for your Help!

herndo
Reply With Quote Quick reply to this message
 
Old 10-31-2010, 12:32 PM
 
Location: Dallas
164 posts, read 588,356 times
Reputation: 110
LTD insurance makes up the difference between SSDI and the 60% of your pay. Ask someone in HR. Your company provides very good benefits, sounds like mine.
Make sure you understand what your pay is going to be. And be aware you will be on Social Security Disability and Medicare with the supplemental insurance provided by your company.
Good luck!
Reply With Quote Quick reply to this message
 
Old 11-01-2010, 08:37 AM
 
37,315 posts, read 59,496,953 times
Reputation: 25330
is this LT disability going to be on-going for the rest of your life until you reach retirement age?
or is the LT disability to last for specific length of time--which might end BEFORE you can apply for retirement through your company?
Make sure you understand in writing the time length for disability and retirement application and the financial payments with each...

if you are a union member--PLEASE speak with your union rep about what might training options and/or other services be available through the union--
I know TX is not a big union state but since you said you worked in refinery you might be union member

I taught with someone whose husband was a driver for Fed Ex and a union member and had his knees go out--he tried to get certified to be long-haul driver vs local delivery and it did not work out--
he had three surgeries to replace his knee joints and was on short and long term disability during that time...
he also--once he realized that returning to work as local delivery driver was not going to work for him--had options through his union for retraining in other fields--
he did not take them--he would not ask the union or FedEx because he was afraid it would have affected his disability through Fed Ed--which it would not have done at all--

HE made some bad decisions which definitely affected his family's living condtions, put terrible stress on his wife, lost their health insurance at least a year prematurely (and he has son with some severe health problems that the wife's insurance does not being to cover as well as his did) ALL because he was afraid to ask for info--

Please don't make that mistake--

Talk to your union rep and/or other people within the union that might have info/options related to your situation--
Talk to people in human relations with your company and see what your options outside the disability pay are--
Talk to someone with the TX dept of rehabilitation/special services to determine what your options are--there is probably an office available in your town
Disability Determination Services Provided by the Department of Assistive and Rehabilitative Services

you may very well need an attorney if you plan to file for SS disability but discuss the fee schedule with him/her very thoroughly before you sign anything--and I would check out more than one attorney as well

it is possible that even if you are not qualified for the work you are doing currently that you are qualified for work in another category--IF so you might find it very difficult to file/claim SS disability when your work-related disability ins runs out...

I taught with someone else whose husband had heart surgery probably 15 yrs ago and developed a severe strep infection--he was ill and out of work for almost a year--filed for SS disability because he had physical limitations--one doctor said he was bed-bound...there was some dispute about his real physical condtion to return to work...eventually his SS claim was disallowed eventhough he had received it for a year or more (had to repay that money I think) and he had to find work...

so retraining for other type of work might be choice you will face if you want to suppliment your reduced pay ...
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top