As the economy improves, many Americans are avoiding unemployment and considering new job opportunities. If you’ve been recently offered a new position there are a few financial considerations to keep in mind.
HSAs & FSAs
Health Savings Accounts and Flexible Savings Accounts can offer tax-advantaged means to cover important budget items, such as health care, transportation, or dependent care.
It’s important to distinguish your commitment with FSAs and HSAs as they may operate on an annual “use it or lose it” basis.
Student loan re-payment programs such as PAYE, IBR and income-sensitive plans often reply on your income as the basis for your monthly payment. Communicate with your lender to determine your new payment level and to adjust your budget accordingly.
If you’re switching from the private to the public sector you may quality for debt forgiveness with your lender.
You may have heard the advice about rolling over your 401(k) to your new employer but if your new employer offers a limited selection of investment you might be better off avoiding this transition.
Another option might be to consider rolling over your funds into an IRA; it’s self-directed so you can select precise investments and also minimize association fees.
If you have been granted company stock, stock options, bonuses or other forms of non-salary compensation, you should be aware of any implications when switching jobs. Stock options generally vest over a period of time so knowing what percentage of this compensation will be available is a wise investment.
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