Previous | How to spot and prevent financial abuse Next | Student loans have a variety of repayment options
November 16, 2023 / Levi Crouse
Plan for the future when leaving your job

Plan for the future when leaving your job

So, you’ve decided to leave your job. You’re excited for a new opportunity, but what does the change in employment mean for health insurance, retirement savings, perks, and other benefits?

If you haven’t already, make a monthly budget that’s adapted to your change in income. This is especially important if you will be out of work for a while or will be making less than you make now. If you need to live off savings for a while, you’ll probably need to adapt your spending habits.

If your employer offers health insurance, chances are you’ll lose it when you leave your job. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows former employees to obtain continued health insurance coverage at group rates. While COBRA coverage typically costs less than an individual health insurance plan, it usually costs more than what you were previously paying through your employer. Not everyone qualifies for COBRA, and in the case that you lose your insurance and do not qualify, you can go to healthinsuranceusa.org to find a health plan that works for you. Depending on household income and potential subsidies, coverage through the Affordable Care Act might be cheaper than COBRA. Whenever there is a gap in coverage, you should research potential plans and compare costs with plan design, network providers, etc.Graphic of a man holding a laptop with a budget sheet, calendar, and stack of money.

If your employer provided a 401(k), your options most likely will depend upon your account’s ending balance. If the total in your 401(k) is less than $1,000, your former employer may issue you a check. If the total in your 401(k) is between $1,000 and $5,000 ($7,000 beginning in 2024), you’ll likely need to roll over the money into an IRA or into your new employer’s plan. If you have more than $5,000 ($7,000 beginning in 2024) in the account, you can leave your money where it is. Note that any cash distribution may result in a taxable event and/or early withdrawal penalty.

Though leaving a job is challenging, and carries lots of financial and personal impact, remember to keep it positive, polite, and professional. Even if you hated your job, it doesn’t do any good to say so. Your professionalism in the last few weeks or days of your job will be remembered as future references call for information about you. And don’t rule out the possibility that you might choose to return to your original employer. In that case, you’ll be glad that you maintained a positive attitude in your final days.

Levi Crouse is human resources manager for F&M Trust.

Recent Articles
Student loans have a variety of repayment options
Student loans have a variety of repayment options

Student loans have a variety of repayment options

November 23, 2023 / F&M Trust

How to spot and prevent financial abuse
How to spot and prevent financial abuse

How to spot and prevent financial abuse

November 09, 2023 / Ray Wills

What does America’s credit downgrade mean?
What does America’s credit downgrade mean?

What does America’s credit downgrade mean?

November 02, 2023 / Warren Hurt

Choosing the right self-employed retirement plan
Choosing the right self-employed retirement plan

Choosing the right self-employed retirement plan

October 23, 2023 / Chris Moore

What is PMI and do I need it?
What is PMI and do I need it?

What is PMI and do I need it?

October 16, 2023 / Dave Kuhns

Should I consider buying pet insurance?
Should I consider buying pet insurance?

Should I consider buying pet insurance?

October 09, 2023 / Jill Reddecliff

Frugality is a valuable financial tool
Frugality is a valuable financial tool

Frugality is a valuable financial tool

October 02, 2023 / Shelby Yinger

How you give is as important as what you give
How you give is as important as what you give

How you give is as important as what you give

September 25, 2023 / Matt Berger

Pay off debt by utilizing your home’s equity
Pay off debt by utilizing your home’s equity

Pay off debt by utilizing your home’s equity

September 18, 2023 / Alicia Beecher and Dave Kuhns

Join our e-newsletter

Sign up for our e-newsletter to get new content each month.

NOTICE: YOU ARE LEAVING F&M TRUST!

You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.