4 steps to protect your finances

After major companies announce significant layoffs, many laid-off workers may face a difficult and uncertain time financially.

Amazon About 14,000 corporate positions and United Parcel Service will be eliminated or eliminated, it said Tuesday. POWER SUPPLYIt said it was reducing its operational workforce by 34,000 people this year. on wednesday, General Engines We laid off approximately 1,700 workers and extraordinary 1,000 jobs cut The Trump administration has also threatened to lay off thousands of federal workers during the shutdown, but those efforts have so far been blocked in the courts.

“Right now is a particularly challenging time to be unemployed,” said Michele Evermore, senior fellow at the National Academy of Social Security.

The Bureau of Labor Statistics did not release its monthly employment report in October due to the government shutdown. But analysts have been worried about the state of the job market for months.

Despite Despite the government shutdown that began Oct. 1, states still have access to the state unemployment trust fund to pay benefits, said Andrew Stettner, director of economics and employment at The Century Foundation.

If you live in one state and work in another, you’ll want to apply for unemployment benefits in the state you work inexperts say. On a DOL-sponsored website you can find: contact information for state unemployment agencies.

State agencies are supposed to pay benefits within three weeks of your application, but delays have become more common since the pandemic, Evermore said.

“The situation will likely get worse as layoffs increase,” he added.

Maximum unemployment benefit amounts vary by state. For example, California’s maximum weekly benefit is: $450; hat in florida $275said Evermore. He added that in most states, claimants can receive benefits for 26 weeks; but the benefits only last for a while 12 weeks in some statesLike Florida.

Donovan said this option is “cost prohibitive” for many people because it requires them to pay the full premium, including the portion their company has already paid. But if you can afford the price tag, this will cause minimal disruption to your coverage. COBRA is generally available for 18 months to 36 months. based on To the Ministry of Labor.

Other options for getting new health insurance include signing up for a spouse’s plan or seeking subsidized coverage through the Affordable Care Act Marketplace, or Medicaid, Eibner said. Those who lose employer health benefits often 60 days Eibner added to enroll in an ACA Marketplace plan. (Market registration for 2026 begins November 1 in most states.)

At the heart of the current stalemate in Washington is whether to expand Covid-era enhanced tax credits for those enrolled in the ACA marketplace. These increased subsidies make health insurance premiums cheaper for tens of millions of Americans. If this aid is not expanded, many will see higher prices for market coverage in 2026.

“But tax credits are not going away completely,” Eibner said. “They are returning to the original levels that were put in place under the Affordable Care Act.”

Experts say Medicaid is the cheapest health care option and will actually cost you next to nothing. Eligibility is based in part on your current income; this could allow many newly unemployed workers to qualify; but unemployment benefits may have an impact.

One exception: If less than $5,000 Your employer may ask you to move money into your workplace retirement account.

You can also roll your funds without taxes or penalties into another qualified retirement plan or individual retirement account, including a 401(k) at your next company if allowed, Levit said. Unless your former employer is pushing you for a transfer, there is no need to rush into this decision.

While cashing out your 401(k) is another option, Levit said, “the distribution may be taxed as ordinary income” and “depending on the age of the employee, there may also be penalties for ‘early withdrawal’.”

Levit said laid-off workers with outstanding 401(k) loans could face an extra headache.

“401(k) loans are generally due in full at termination,” he said. “If not repaid, the outstanding loan will be considered a taxable distribution subject to ordinary income tax and potential penalties.”

But it’s worth talking to your plan administrator and finding out what your options are, Levit added: “Some have flexibility to continue payments even after termination.”

People who have lost their jobs and are worried about a student loan bill also have options. You can register a income-based repayment plan determines your monthly payment based on your earnings and provides proof that you have lost your job; While unemployment benefits count as income, you’ll likely receive a low payment, and some may owe nothing at all under the terms of their plan.

The U.S. Department of Education also offers a proposal Unemployment PostponementA system where you can pause your payments for up to three years after you lose your job. Some student loans will still accrue interest during the payment pause, and some will not.

Ted Rossman, Bankrate’s senior industry analyst, said during a time of unemployment you should ask other lenders for “a break.”

“Many lenders have hardship programs that allow you to skip a payment or rearrange the due date,” Rossman said. “Lenders are often willing to work with you, especially if it’s a temporary situation like a government shutdown, job loss or natural disaster.”

If you can manage it, making at least minimum payments on all your debts will prevent any collection activity from starting and potential risks to your credit, Rossman added.

In addition to paying attention to your finances, Evermore said it’s also important to pay attention to your mental health after losing your job. This may mean sharing what you’re experiencing with others, including your family, friends, and therapist.

“Unemployment is one of the most stressful things that can happen to a person, so remember you are not alone,” Evermore said. “There are people who want to help you during this difficult time.”