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I'm changing jobs

Today, people are changing jobs more often than ever before. Though a job change can offer exciting prospects of new opportunities, there are important financial factors to consider as you make your big move.

 

 

Protect your retirement savings – If you have a company-sponsored retirement plan like a 401(k) and you change jobs, you can roll that 401(k) over into an IRA. By rolling your 401(k) over, you will maintain the tax-deferred status of your funds as they continue to grow. If you choose to cash out and deplete your savings, you will owe income tax plus the associated penalties on the amount you withdraw.

Boost your retirement savings – If your new job means a pay increase, it’s smart to increase your contribution to a 401(k) plan or your IRA.

Set yourself up for tax-free retirement income – A Roth IRA allows you to get tax-free growth and tax-free distributions when you retire, which is good if you’ll be in a higher tax bracket when you retire. You can open a new Roth IRA or convert a traditional IRA to a Roth.

Review your life and disability insurance – A job change is a good time to review your coverage. You can address any gaps the change may have created. Plus, you can ensure your beneficiaries are up-to-date on all your policies.

Examine your health insurance* options – Depending on what your company offers, you may want to consider a Health Savings Account (HSA). An HSA gives you three ways to save on your taxes: the money contributed into the account is tax deductible, it grows tax-free, and withdrawals are tax free if they are for qualified medical expenses.

*Life and disability insurance is not a deposit, not FDIC insured, not guaranteed by the bank or any of its affiliates and not insured by any federal government agency.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.