Burnt out? Over it? Ready for a change?<\/p>\n\n\n\n
Millions of people are quitting their jobs each month in what many have dubbed the \u201cGreat Resignation.\u201d<\/p>\n\n\n\n
Before you join the mass employment exodus, do a thorough scan of your financial situation.<\/p>\n\n\n\n
That means, of course, taking a hard look at your spending habits and any savings you\u2019ve accumulated \u2014 you need at least a little cover to get you from one job to the next.<\/p>\n\n\n\n
It also means taking inventory of everything your employer currently subsidizes. Things like health care, retirement savings, commuter benefits and stock options, which you may surrender when you exit.<\/p>\n\n\n\n
\u201cPeople know they\u2019re walking away from a paycheck,\u201d says Eric Roberge, a certified financial planner and founder of Beyond Your Hammock, a financial planning firm in Boston. \u201cBut they often forget to consider their benefits packages.\u201d<\/p>\n\n\n\n
Use this financial checklist to make sure you don\u2019t leave any money on the table when you leave your job.<\/p>\n\n\n\n
1. Use your FSA<\/strong><\/p>\n\n\n\n Flexible spending accounts<\/a> don\u2019t move with you from one job to the next. You typically need to use the funds before you resign or lose that money altogether.<\/p>\n\n\n\n With health care FSA accounts, you can use the full amount elected, even if you\u2019ve only contributed a portion when you leave. With dependent care accounts, you can use what you\u2019ve contributed up to your final paycheck.<\/p>\n\n\n\n Most FSA plans offer a grace period, allowing you to submit claims after you leave. But you\u2019ll be reimbursed only for eligible expenses that occured on or before your last day, so stock up on cold medicine, hand sanitizer and ibuprofen before calling it quits.<\/p>\n\n\n\n There is one exception: If you opt for COBRA coverage (more on that below), you may be able to keep your health care FSA. If you go this route, you\u2019ll continue to make contributions, plus pay any FSA and COBRA administration fees.<\/p>\n\n\n\n 2. Spend any unused commuter benefits<\/strong><\/p>\n\n\n\n Did you make pretax contributions to pay for parking or public transportation? Use those funds before your last day or you might lose them forever.<\/p>\n\n\n\n 3. Get checkups, refill prescriptions<\/strong><\/p>\n\n\n\n If you have health insurance through your employer, take care of any routine medical appointments (and nonroutine things you\u2019ve been putting off) before your insurance runs out.<\/p>\n\n\n\n When your employer-provided plan will end depends on your employer, though it\u2019s typically either on your last day or at the end of the calendar month in which you left.<\/p>\n\n\n\n 4. Investigate vacation, sick leave<\/strong><\/p>\n\n\n\n Companies differ on how they handle accrued vacation and sick time. Some will cut you a check for any unused vacation when you leave. Others will pay out a set number of hours (up to 20 hours, for example). With others, you forfeit any unused time when you quit.<\/p>\n\n\n\n Find out what your employer\u2019s policy is before putting in your notice and use up any time you won\u2019t be paid for when you quit. You\u2019ve earned your vacation and sick days, so don\u2019t leave any time or money behind.<\/p>\n\n\n\n 5. Sign up for health insurance<\/strong><\/p>\n\n\n\n Don\u2019t risk going uncovered while between jobs. Evaluate your health insurance options<\/a> and choose a plan that works for you.<\/p>\n\n\n\n You may also have the option to continue your employer insurance but pay the full premium, for up to 18 months via the Consolidated Omnibus Budget Reconciliation Act, better known as COBRA. You can also jump on your spouse\u2019s plan or sign up for a new one through the health insurance marketplace<\/a>. (Quitting your job is considered a qualifying life event.)<\/p>\n\n\n\n 6. Research your 401(k) fees<\/strong><\/p>\n\n\n\n Make sure you\u2019re well versed on the plan options with your employer\u2019s 401(k), as well as any fees associated, so you can decide what to do with your account when you leave<\/a>.<\/p>\n\n\n\n You may choose to leave your 401(k) where it is, but that should be an intentional choice, not the default. If you have a new job lined up, you can roll it into your new employer\u2019s plan (if it offers one).<\/p>\n\n\n\n \u201cPay attention to fees in each 401(k) and the different investment options to decide where it makes sense to keep your money,\u201d says Elliott Appel, founder of Kindness Financial Planning in Wisconsin. \u201cAnother option is to roll it into an IRA, where you can choose the investments and minimize costs.\u201d<\/p>\n\n\n\n 7. Learn your vesting schedules<\/strong><\/p>\n\n\n\n Some companies use a vesting schedule to dole out benefits like stock and retirement plan contributions. Leave the company before you\u2019re 100% vested and some \u2014 or all \u2014 of that money could go back to your employer.<\/p>\n\n\n\n Before you turn in your notice, find out whether you\u2019re fully vested. If you\u2019re not, take note of your next vesting milestone and how much money you\u2019ll forfeit if you leave before that date.<\/p>\n\n\n\n \u201cIt\u2019s imperative to know what you might be leaving on the table so you can weigh the cost versus benefit,\u201d says Ashlee deSteiger, founder of Gunder Wealth Management in Michigan.<\/p>\n\n\n\n You may opt to stay another week, month or year to gain full ownership of your vested benefits.<\/p>\n\n\n\n This article was written by NerdWallet and was originally published by The Associated Press.<\/em><\/p>\n\n\n\n More From NerdWallet<\/strong><\/p>\n\n\n\n Kelsey Sheehy writes for NerdWallet. Email: ksheehy@nerdwallet.com. Twitter: @KelseyLSheehy.<\/p>\n\n\n\n The article A Financial Checklist for Quitting Your Job originally appeared on NerdWallet.<\/p>\n","protected":false},"excerpt":{"rendered":"Burnt out? Over it? Ready for a change? Millions of people are quitting their jobs each month in what many have dubbed the \u201cGreat Resignation.\u201d Before you join the mass employment exodus, do a thorough scan of your financial situation. That means, of course, taking a hard look at your spending habits and any savings […]","protected":false},"author":7,"featured_media":2799,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","attr_excerpt":["Burnt out? Over it? Ready for a change? Millions of people are quitting their jobs each month in what many have dubbed the \u201cGreat Resignation.\u201d\r\nBefore you join the mass employment exodus, do a thorough scan of your financial situation.\r\nThat means, of course, taking a hard look at your spending habits and any savings you\u2019ve accumulated"],"footnotes":""},"categories":[5],"tags":[7,33,32,12,20],"class_list":["post-2502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-bank","tag-insurance","tag-invest","tag-resources","tag-savings"],"yoast_head":"\n