Consider this financial checklist when starting a new job

1 Wrap up loose ends before leaving your job

• Check your paid time off (PTO) balance—Review your company's policy on unused leave. Some employers pay out unused days, while others don’t.
• Find out when your health insurance coverage ends—Explore COBRA or another option to avoid having a lapse in coverage between the time you leave your job and your new job’s benefits start.
• Gather important documents—Download your most recent pay stub, W-2 forms, and any performance reviews that you may need in the future.
• Review your stock options—Check if you can exercise them (buy company stock) and the deadline to do so.
• Check on your bonuses—If you get a bonus, find out if it depends on you being employed by a certain date. This can help you decide the best time to give your notice. 

2 Decide what to do with your retirement account

If you have a workplace savings plan, like a 401(k), consider how you want to manage the money in your account, including the options below.

As other options may be available, you are encouraged to review the advantages and disadvantages of each one and decide what works best for you. If you need guidance, consider reaching out to a financial professional.

3 Enroll in your new benefits

From health insurance to retirement plan contributions, your new employer’s benefits can significantly affect your overall financial health and wellness. Before starting your new job, take a moment to review your complete benefits package.

• Compare health insurance plans and decide what best suits your needs
• Enroll in your new retirement plan and take advantage of any employer matches
• Consider setting up automatic annual increases to your retirement plan, if allowed
• Explore other perks like health savings accounts (HSAs), flexible spending accounts (FSAs), life insurance, and free wellness programs 

4 Update your W-4 tax withholdings

• Fill out a new W-4 form
• Use the IRS estimator to make sure your withholding is accurate

5 Review your budget

• Update your monthly budget based on your new salary and expenses
• Revisit your savings and investment goals

6 Stay organized

• Keep track of any new accounts you’ve opened, your current benefits, and other important paperwork
• Consider using a mobile app or digital tool to manage all your savings and investing accounts in one place.
• Automate your finances, where you can, such as setting up direct deposit with your employer and online bill pay for regular expenses like public transportation to and from work.

FAQs

What should you do before you leave your job? 

Before leaving your job, check your vacation balance, health insurance end date, and download important documents, such as pay stubs and W-2 forms. Also, review any vested stock options and bonuses to understand their terms and deadlines.

What should you do with your retirement account? 

You have options, including leaving it with your prior employer, moving it over to your new employer’s plan, rolling it over to an IRA, or cashing it out. 

What about benefits? 

Compare your health insurance plan options, enroll in your new retirement plan, check out any employee discounts, and familiarize yourself with other resources, like wellness programs, available at your new job.

What else should you do when starting a new job?

Update your W-4 tax withholdings and adjust your budget based on your new salary and expenses. Consider using a digital tool to help organize all your accounts in one place, set goals, and track your financial progress.