As you look forward to starting a new job, it’s important to consider how you will manage your finances while making the transition from one employer to the next.
Proactively manage your health insurance to avoid a lapse in coverage
- Discuss dates with your old and new employers to assure continuous coverage.
- Check on the status of any pending claims under your old coverage.
- Arrange any needed transfers of records from your old insurer to your new insurer.
Decide what to do with your retirement accounts
- Evaluate all of the post-employment options for assets in your current plan—leave the assets in place, roll them over to an IRA, or roll them over to your new employer.1
- Determine whether your old plan will require you to arrange a transfer within 60 days or get automatically cashed out, keeping in mind that cash-outs carry immediate tax consequences.
- Provide any necessary change-of-address information.
- Keep up your retirement saving and investing efforts at your new employer.
Check the details of your Flexible Spending Account (FSA)
- A Flexible Spending Account (FSA) lets you set aside a pre-tax portion of your paycheck to cover qualified medical expenses that would have otherwise come out of your pocket.
- Prepare for your job change by submitting all eligible expenses for reimbursement under your old programs before you leave your current job, and check with your company’s HR department to find out whether you have a grace period for submission.
- Determine whether any future child care or commuting expenses may qualify for reimbursement from your old accounts.
Manage your employer-sponsored life and disability coverage
- Determine the extent to which your new employer’s coverage might be a complete replacement for your existing coverage.
- Evaluate conversion options for existing coverage.
- Consider the need for individual disability insurance.
- You have choices for what to do with your employer-sponsored retirement plan accounts. Depending on your financial circumstances, needs and goals, you may choose to roll over your eligible accounts to an IRA or convert to a Roth IRA, roll over an employer-sponsored plan from a prior employer to an employer-sponsored plan at your new employer, take a distribution, or leave the account where it is. Each choice may offer different investment options and services, fees and expenses, withdrawal options, required minimum distributions, and tax treatment, and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care.
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