![]() ![]() If you retire or lose your job when you’re age 55 or older and maintain your 401(k) with your former company, you can take penalty-free withdrawals between ages 55 and 59 1/2. While you can’t contribute to a 401(k) after you retire, if you have some earned income, you can continue adding funds to an IRA, which may also have more investment options to choose from. This is called consolidation, and it offers the advantage of simplification-all accounts in one place. Generally, you’re choosing between these two options: Roll your savings from your 401(k) into an IRA. Compare fees, tax implications, and think about when you’ll need to withdraw money,” Winston says. “Weigh the pros and cons of your options to decide what’s best for you. Decide what to do with your retirement accounts. Ask your HR contact if you have this benefit. If your current or previous employers offered a traditional pension (also called defined benefit plan), you may have to decide how it will be paid. (Your employer has a list and its own benefit rules and deadlines.) 5. ![]() Submit claims for health care expenses (or dependent care) by your termination date so you’ll get reimbursed. If you have a balance, what you don’t use, you lose, so shop for FSA-eligible items. Tip: If you use HSA funds for unapproved expenses, there are tax implications. (You don’t have to take Social Security to get full Medicare benefits, but you do have to contact Social Security to sign up.) When you sign up through Social Security to elect Medicare, you’ll have options like a prescription drug plan and Medicare supplemental coverage. You may qualify for coverage through the Veterans Benefits Administration. ![]() Availability varies from state-to-state and depends on your household income. If you have dental and/or vision insurance through your old job, that’s included as part of COBRA, too. However, if you turn 65 during those 18 months, you must apply for Medicare. COBRA can be pricey because you pay the full premium (rather than your employer covering part of the cost). Coverage through COBRA to continue health insurance for up to 18 months after losing your coverage through work.The insurance policy of a spouse/partner (usually, you’ll have to sign up within 30 days of your termination date from your job).Retiree medical coverage through your employer.Make this a top priority as you’re planning to retire so you don’t spend any time uninsured. Review health insurance options in retirement. Tip: Enter your employee benefits or human resources department into the contacts on your phone in case you have questions once you’re retired. Health insurance and retirement: More on those topics below.The difference: You’ll pay the premium directly to the insurance company, rather than having it payroll deducted. Life insurance extension: To convert a voluntary life insurance policy (one bought or provided by your employer), contact your benefits administrator to get the paperwork started.Upcoming checkups: If you have dental or vision insurance now but won’t when you retire, schedule appointments before your last day while those expenses may still be covered.This list can help in the retiring transition: However, “those benefits aren’t as common as they used to be,” says Winston. Some benefits may stop the day you’re done with work, but others may extend by a set number of days. Wages in retirement (example: part-time job).Investments (stocks, bonds, mutual funds, real estate).Personal savings (CDs, bank and money market accounts).Individual retirement accounts (IRAs) and retirement plans (401(k), 403(b), ESOP). ![]()
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