The Switching Jobs Checklist

Congratulations on finding a new job or career!  I know this is an exciting yet overwhelming and scary time.  There are so many things that need to be done in the short term.  These are the 5 main things you want to verify in reverse order. 

·       New Retirement plan

·       Old Retirement Plan

·       Disability Insurance

·       Life Insurance

·       Health, Eye & Dental Insurance

·       Tax Withholdings

So, the first thing that (usually) changes when you switch jobs is your income.  This is a great time to verify that all of your tax withholdings are correct.   You do not want to claim too little and give Uncle Sam a huge interest-free loan, but you also don't want to get dinged at the end of the year from claiming too many.  Remember to check for tax credits that apply to your new situation!

The next thing to verify is your health, dental, and vision insurance.  Did you lose the insurance that you had with your previous job?  Does your new job offer a better plan?  Does that plan allow you to keep your doctors/medications?  Changing jobs is deemed an enrollment event; make sure your coverage is what you need it to be! 

Next on the list is life insurance.  Did you have insurance through your old job?  Does your new job offer life insurance?  If not, are there convertibility options from your old ones?  Does it make sense to do so?  Will it provide enough coverage?  Does it have all of the benefits of a normal policy?  Does it make more sense to get a policy outside of work, so you can customize it to your exact needs and not have to worry about this? 

Another thing to check is your disability insurance.  Does your work provide any short-term or long-term disability?  Many places only offer workers' comp, which will only protect you from a job-related injury.  What if your injury occurs elsewhere?  Can you afford to not be able to work or take reduced wages for 2-12 months? 

The next thing we have to take care of is your old retirement plan.  What are the convertibility options?  This becomes especially tricky if it is a pension, but if it is a 401k it can be easily rolled over into the IRA tax code and moved to a new home without any penalties or taxes (as long as you do it within the timeframe).

Finally, the last thing to consider is your new retirement plan.  Does your company offer a 401k?  Is it vested?  How good is the match?  Is it worth using, or is a tax-free option like a ROTH make more sense? Do you want a risk-free vehicle?  Remember, there are many other ways to save for retirement outside of company-sponsored plans.   

There are a lot of things to review when you change your job, but you are not alone.  Plans, coverage, needs, and timeframes all change.  For help, advice, or a second opinion on any of these things, or to create a plan that meets your exact needs, call my office today.