Top Financial Tips When Switching Jobs

Wealth Advisor

In this video, Jamison from EWA advises on financial tips when changing jobs. Key points include utilizing current employer benefits, checking insurance coverage, using flexible spending accounts, reviewing pay stubs, monitoring 401K contributions, understanding non-salary compensation like stock options, and planning for the transition to a new job, including retirement plans and benefits. Jamison recommends reviewing your overall financial plan to align with your goals. Reach out to EWA for assistance with job changes.

Video Transcript

Hi, I’m Jamison, an advisor with EWA, and in this video, I’m going to go over a few financial tips when you’re making a job change. Here are some things to be aware of at your current employer before you do make the change.

First one would be use any benefits while you still have access to them if you are losing any. So an example is that not all employers offer dental and vision insurance. So if the current current one does and the new one does not, make sure that you schedule any appointments while you still have access to the insurance benefits.

Another tip is to review your life and disability insurance and make sure you’re aware of if you lose all of it or if you take any of it with you to your new employer. Make sure you check your flexible spending account balance.

If you do have one money in this account is use it or lose it. So you want to make sure you submit any claims to make sure you have access to this money before the termination date so you get reimbursed and you don’t lose out on any of the money in the account.

Also want to review your last pay stub. This can include anything that you’re owed back. Could be commissions, bonuses, reimbursed, time off to make sure that the paycheck always aligns with what you’re owed.

Want to check your 401K contributions, which is also on the pay stub, because the new company will not be aware of how much you had contributed at the old company and you want to make sure that you do not go over the 402 G deferral limit, which is one limit per year.

Another tip would be to review any non salary compensation. So if you have stock options or restricted stock, make sure to understand the vesting rules, what you get when you leave, any tax implications, or any other changes that you would need to be aware of.

Many companies do require you to exercise any stock options within 90 days of termination. So really important to understand the rules so you don’t lose them. Some tips for you want to be aware of when you do start the new job.

Understand your new and your old retirement plans. You should consider rolling your old 401 into a new IRA. Or an existing IRA and consider converting any pretax balances to Roth, if that makes sense.

Set up your new plan contributions to look into whether the new contributions should be pretax or Roth, and align your contributions with the old contributions at your past job so you don’t go over that 402 G limit.

Also, obviously you want to set up your new investments in the new plan as well. What make a decision on what to do with old health savings account if you did have one in your past employer, sometimes you’re able to roll an HSA into the new employer.

But if you’re not able to, you can open up a new account at any custodian and move the old one into the new account if the employer does not offer a health savings account, Also, want to make sure you review the new benefits at the new employer.

Set up any new health insurance, review your life and disability insurance and make sure that if there’s any gaps filled or the coverage is changing, that you supplement it with policies outside of work.

Most importantly, make sure you review your overall financial plan with new income and benefits and retirement plans to make sure that your plan is always in line with your goals. Have any questions or you know somebody or you’re making a job change, feel free to reach out and we’re happy to help.

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