Moving jobs can be a huge financial change. Working for a new company means new benefits. Learn how to best transfer your benefits to your new job here.
What to do when quitting your job
Moving jobs is a big deal. It’s not as simple as walking out of the old building and into the new one. You should do a few things when leaving your old job and starting your new job to help the transition.
Before you officially submit your resignation, make sure this is what you want. If you are in a toxic or harmful workplace and need to get out, then get out; but if there is an easier way to make work enjoyable, it’s worth a try. Once you quit, you will no longer have a job. Make sure you can give yourself and your soon-to-be former employer and coworkers a good reason to leave.
If you want to leave, it’s a good idea to have a new job lined up when you decide to quit. This will close the gap of uncertainty and being in between jobs. You can start looking for jobs before you quit. Once you have the new job lined up, you must inform your boss that you will leave. Give them at least 2 weeks’ notice so they have time to line up a replacement for you. It can also be a good idea to offer to train the replacement coming in for your last few days to make the transition easier for the company as well.
Take advantage of any insurance offered by your job, especially medical. Go and get your checkups done before you have to switch healthcare providers. Also, look into how long your insurance coverage will last. It may stop the day you officially stop working for the company, but it may extend all the way out to the end of the month.
You won’t be able to take the money from your HRA (health reimbursement account) or your FSA (flexible spending account) with you, so make sure to correctly spend as much of that money as you can. The money in your HSA (health savings account) is yours to keep saving. There are usually options for what to do with your HSA, you can transfer it over to your new job’s plan, you can transfer it over to a new, separate HSA provider, or sometimes you can keep it with your old employer. If you borrowed money from your 401(k), you need to pay that off as soon as possible, preferably before you leave your old job.
What to do when moving to a new job
After you have tied up all the financial loose ends from your old job, you can focus on setting up all your benefits at your new job. Moving jobs requires a bit of juggling, but if you know what you need to do, you can stay organized.
One of the first things you can do to make finances easier at work is to set up direct deposit. This allows you to be paid directly to your checking account instead of through a middleman, which makes getting your paycheck easier and faster.
Go over the company benefits with your new employer. Figure out HSA, FSA, and HRA accounts and whether you can transfer them or how to best start them over. You may be able to transfer your 401(k), or you can leave it with your old employer’s plan.
Can I transfer the benefits of my old job to my new job?
Some benefits you can directly roll over to your new job, but others you will need to close up with your old job and set up again with your new job. Ask around at both your old job and your new job to see what benefits you can transfer.
How to transfer benefits over to a new job
Health insurance plans often have a waiting period before the benefits can kick in. If your health insurance from your old job extends to the end of the month, try to give yourself as much overlap as you can. If your old health insurance stops when you resign, or the waiting period for the new insurance is too long, you may want to apply for a short-term health insurance policy to make sure you are still covered. Some companies offer multiple insurance plans. If this is the case, make sure you choose a most affordable plan while still covering what you need. You don’t want to be paying money you don’t need to be. HFA, HSA, and FSA accounts can sometimes be transferred over, and sometimes it’s better to spend them while you’re at your old job and set up new ones at the next job. Talk to both your old employer and your new employer to see what can roll over and what is lost when you move jobs.
Your 401(k) can usually be transferred from your old job to your new one. If you have any loans from your 401(k) they need to be paid off by a set time after you leave your old job, but it’s better to try to pay them off before you quit. You can also roll your 401(k) into an IRA at your bank or an investment firm.
By having an organized process of what you need to do, you can make sure you switch over all your benefits correctly while saving the most money for yourself. Make a plan ahead of time to know all the steps you need to take to keep your benefits for as long as you can and keep the most money you can.
