Accepting a new job offer is awesome, but before you leave your old job, there are a few things you’re going to want to do to avoid leaving money behind and make starting a new job relatively seamless.
Here are six helpful tips when you’re starting a new job.
The money you contributed to an FSA won’t follow you to your next job. Consult your plan about FSA-eligible expenses you could spend your money on. Prescriptions, co-pays and eyeglasses are generally items you use these funds for.
If you expect to be without health insurance between jobs, you may be able to keep the health insurance you have with your to-be-former employer’s healthcare plan for 18-36 months using what’s called COBRA coverage. It’s a federal program that allows eligible employees (and their dependents) to continue with their health insurance benefits under certain circumstances, such as if they are laid off or leave their jobs for reasons other than gross misconduct
There is a timeline to consider. You’ll have at least 60 days – beginning on the date you are given an election notice or the date you would lose coverage, whichever is later – to decide if you want to continue your health insurance coverage through COBRA.
Also important: You could end up paying more per month as an ex-employee, particularly if your employer previously contributed to your insurance coverage.
Buying health insurance through the Health Insurance Marketplace could be a way to get covered. Like COBRA, you have 60 days to choose a marketplace plan and enroll.
Alternatively, if your spouse or domestic partner has insurance, they may be able to add you to their policy, depending on their plan. In all instances, you’ll want to look into how soon you need to apply for coverage to qualify.
Some plans may include the option to keep your life insurance coverage after you leave an employer. However, you’ll probably be responsible for fully paying the entire premium yourself, because your former employer will not be contributing any money.
If your new employer offers life insurance, pore over details including coverage limits and monthly premiums. You may also wish to consider buying a policy on your own.
If you know you’re going to have an income gap between jobs, figure out how much you’ll need to save to cover your living expenses, including insurance, rent and any relocation costs.
We’ve got a full article that goes into the details on how to roll over your 401(k), but here’s a snapshot of some options:
The fresh paperwork that comes with a new job makes it a good time to change things up on your W-4. (Though you don’t have to change jobs to update your preferences. Ask HR at your current office if you are staying put.)
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