In need of advice after loosing employment.

[Citylights18]

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@Anonymous wrote:

Do you have a 403(b)/401(k) or equivalent.   While it is often frowned on, taking some out can be a understandable move when the situation merits it (just contribute more once you get a good job).   The withdrawal will be taxed and (assuming you are under the age limit) have a 10% penalty.   There are also hardship exceptions which might apply, e.g. paying medical insurance premiums.  Hopefully you are getting some employer-subsidised COBRA?

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You can pay your COBRA premium out of your HSA money if you have it.

[Citylights18]

In the situation of the OP I would try to get credit to help meet expenses in the short term. A couple considerations.

1) Self employment will lead to self employment tax and inegiblity for unemployment.

2) 401k money will have to be rolled over within I believe 60 days or its a full distribution. Access here might take some time.

If you go with a line of credit for paying the mortgage/hoa and then a 0% APR credit card that could keep you covered for longer. Through the unemployment period of 6 months and 2k which is enough to pay your mortgage. If you get past the unemployment period you might want to rent the property out. Also file your 2023 taxes early for your tax return which should be substantial if you are out a few months.

You should be okay for 6 months factoring in unemployment, tax return and 0% APR credit cards and/or credit lines. Ideally you want to hold on to as much cash as you can as long as you can. Try to invest the cash you have wisely which at your level sounds tough.

I'd probably also your resume out on all the major job sites ASAP. List the skills required in your projects and mention ITSM migrations because companies like employes experienced with technology migration effots. Research the salaries online to see what a reasonable target would be for your skills and experience.

[Anonymous]

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@Citylights18 wrote:

In the situation of the OP I would try to get credit to help meet expenses in the short term. A couple considerations.

2) 401k money will have to be rolled over within I believe 60 days or its a full distribution. Access here might take some time.

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60 days is in the case where you take the money out of the 401(k) rather than do a trustee-to-trustee transfer.   Then you have 60 days to put all the original money in another tax-deferred account (assuming 401(k) is traditional) or pay tax and maybe penalties.   Many employers allow 401(k) with sufficient balances to stay there, if the ex-employee wishes.  But rolling over to an IRA is often best