If you’ve recently been laid off from Indeed in Austin, first, take a breath. Layoffs—even expected ones—can bring a rush of uncertainty. But they can also be a powerful inflection point in your financial life. With thoughtful planning, you can transition from reactive to proactive and turn this disruption into a moment of long-term gain.
Here’s what to know and do across the key areas: equity compensation, insurance, retirement plans, taxes, healthcare, and job transition planning.
1. Equity Compensation: RSUs and Stock Options
Many Indeed employees received restricted stock units (RSUs) as part of their total comp. A layoff triggers important timing and tax considerations.
Key Things to Check:
- Vesting Cutoff Date: RSUs typically vest monthly or quarterly. Review your termination date relative to your next scheduled vesting. In some cases, RSUs vest only if you’re still employed on the vesting date.
- Delivery of Vested Shares: Shares that have already vested should be in your Fidelity or Morgan Stanley account (or wherever Indeed custodies its equity comp).
- Double Check for Unexercised Options: If you were granted stock options in earlier roles or through acquisitions, there may be a 90-day window to exercise after termination.
What to Do:
- Set a plan to diversify: Holding too much Indeed stock can overexpose you to one company. Consider selling RSUs as they vest and reallocating to a diversified portfolio.
- Understand tax treatment:
- RSUs are taxed as ordinary income upon vesting.
- Future appreciation is taxed as capital gains, so start tracking your cost basis.
- Avoid a surprise tax bill: Review your year-to-date vesting and sales. Indeed likely withheld at a flat 22% federal rate, but your true marginal rate may be higher.
2. Health Insurance: COBRA and Marketplace Options
Indeed provided solid healthcare benefits. Upon separation, you’ll lose employer-sponsored health coverage—but you have options.
Options to Consider:
- COBRA: Extends your current group plan up to 18 months. Expensive (~102% of full premium), but good if you’re mid-treatment, pregnant, or need continuity.
- Marketplace / ACA Plans: Often much cheaper, especially if your income drops post-layoff. Go to healthcare.gov or your Texas exchange.
- Spouse/Partner Coverage: A qualifying event like a layoff allows mid-year enrollment in their employer plan.
What to Do:
- Don’t delay! You have 60 days to elect COBRA or enroll in ACA coverage.
- Review deductibles: If you met your deductible this year, staying on COBRA might make more sense.
- Use an HSA if available to cover medical expenses tax-free.
3. 401(k) Plan Decisions: Stay or Roll?
If you had a 401(k) through Indeed, you’ll have to decide what to do with it.
Options:
- Leave it where it is: Usually allowed, but you lose active management choices and consolidation opportunities.
- Roll over to an IRA: Gives you broader investment options, often lower fees, and better tax control.
- Cash out: Generally a bad idea. You’ll owe income tax + 10% penalty if under 59½.
Why Roll Over?
- Avoid overlapping or concentrated investments.
- Enable Roth conversions or backdoor Roth strategies.
- Manage tax-efficient withdrawals in early retirement.
Tip: Work with a financial advisor or tax pro to structure your rollover and avoid triggering taxes.
4. Life, Disability, and Other Benefits: Portability Matters
Your employer-paid or discounted insurance coverage likely ends after separation. But some benefits may be portable.
Benefits to Review:
- Life Insurance: Many group life policies allow conversion or portability to individual coverage. Rates may be higher, but no medical underwriting is needed.
- Long-Term Disability Insurance: Can sometimes be continued, but must be elected within a short window.
- FSA Balances: Flexible Spending Accounts may have a “use it or lose it” provision. Submit claims ASAP.
- Employee Stock Purchase Plan (ESPP): If you participated, confirm how unvested contributions or held shares are handled.
5. Tax Planning: Withholding and Future Income Shifts
Layoffs create lumpy income—big severance and RSU income this year, possibly none next year. That creates strategic tax opportunities.
Consider:
- Increased income this year could push you into a higher tax bracket. Plan for April 15 now.
- Next year might be low income, making it a prime time to:
- Do Roth conversions.
- Harvest capital gains at 0% or 15%.
- Deduct eligible job search expenses (if self-employed or consulting).
- Review estimated tax payments if withholding is too low.
Tip: A tax-savvy accountant or financial advisor can help map your income bridge and avoid surprises.
6. Career Transition and Cash Flow Planning
This is your rebuild phase. With severance and equity, you may have 6–12 months of cash runway. Use it wisely.
Top Tips:
- Revisit your budget: Consider pausing big expenses or refinancing debt.
- Build a 6-month cash buffer: In a high-yield savings account or Treasury ladder.
- Upskill or consult: This is a good time to explore contract work, short-term consulting, or career pivots.
- Track expenses: Use Monarch, Pioneer360 or You Need a Budget (YNAB) to stay proactive.
7. Speak with your Fiduciary Advisor
You’re facing dozens of decisions across tax, investments, healthcare, and risk—all in a compressed timeframe.
A fee-only fiduciary advisor can help you:
- Analyze your RSUs and stock sales.
- Plan your rollover and optimize taxes.
- Decide on COBRA vs. ACA.
- Build a new long-term financial roadmap.
We’re Here to Help
At Pioneer Wealth, we have decades of experience working with professionals navigating transitions like layoffs, early retirement, and career pivots—especially those from the tech and startup world in Austin.
