Question

Bob, age 47, has worked for XYZ Company the past 12 years. XYZ Company has lost a major contract and must begin downsizing immediately. Bob was laid off yesterday. What should Bob do first?

A. File for unemployment benefits.

B. Roll over his company 401(k) plan.

C, Convert disability coverage under COBRA provisions.

d. Notify the bank holding the mortgage on his house.

Answer 1

Bob should file for unemployment benefits first, unemployment benefits starts after one week waiting period as soon as he laid off.

Applying for unemployment compensation needs to come first as conversion of disability coverage under COBRA comes after 60 days after bob termination.

Notifying bank of holding the mortgage on his house does not remove obligation to pay the mortgage as he can work with bank for extending time of payment.

401 K plan does not need occur immediately as bob is not retiring and benefit will not be lost in case of delay.

That means he need to apply/ file for unemployment benefits first.