Financial Tasks to Consider When Changing Jobs

Starting a new job brings both excitement and challenges. Amid the flurry of new responsibilities, a job change is a time to address various financial tasks to ensure a smooth transition and safeguard your financial well-being.

Manage your payroll

Start by providing accurate information to your new employer, including any required tax forms and details for direct deposit. You’ll most likely be asked to provide the routing number and bank account number where you’d like your paycheck deposited. 

It’s a good idea to know your new payroll schedule and familiarize yourself with the process of accessing pay stubs or online payroll systems. Depending on when you start, you may experience a gap between paychecks. So have a plan in place in case you need to tap into extra funds, like pulling from a rainy day fund.

Handle your 401(k) and other retirement accounts

There are a couple of options to consider if you have a retirement plan with a past employer. You can roll over your 401(k) into your new employer's plan. This won’t incur taxes or penalties. But it's smart to compare investment choices, fees and employer-matching contributions—especially since that’s extra money!

You can also move your 401(k) into an Individual Retirement Account (IRA). This choice offers investment flexibility and control over your funds. For example, Banner Bank’s IRA comes with no annual fees, offers competitive interest rates and is designed for long-term saving. You can even calculate your retirement using our Financial Planning Tools. Consult your banker or a financial advisor to evaluate the best strategy based on your retirement goals and investment preferences.

I recommend keeping track of your own contribution amounts and limits or employer-matching contributions that may be impacted by changing jobs. When you know the rules and deadlines, you can make informed decisions and maximize your retirement savings.

Assess your insurance coverage

Changing jobs provides an opportunity to reevaluate your insurance coverage, to be sure it meets your needs. Review your new employer's health insurance options. Think about premiums, deductibles, co-pays and coverage for specific medical needs.

Some companies offer other insurance benefits, such as life insurance, disability insurance and supplemental coverage. Take a look at coverage amounts and any waiting periods or exclusions. If necessary, explore additional policies to fill any gaps in your coverage.

It may also be a good time to review your beneficiary designations for insurance policies and update them if needed, and make sure your loved ones are protected and included in your current plans.

By checking off these tasks, and seeking professional guidance, you can set yourself up for financial success and have peace of mind.