IF YOU’RE burnt out or want a change, you might think about quitting your job. But before you write your resignation letter and join the millions of American who have quit their jobs in recent years, there are several things you need to do. To begin with, if you don’t have another job lined up, you need to make sure you have an emergency fund so you can pay bills until you find something else.
You also need to look at everything your current employer subsidizes, like healthcare, retirement funds, commuter benefits, and stock options that you might have to give up when you leave the company. Before leaving your current job, go through this resignation checklist that we provide you with in this article.
Key Takeaways
If you only take a few items away from this article, let them be these.
- Make sure you schedule any routine medical appointments and stop putting off nonroutine things before your insurance runs out.
- Make sure you have good health insurance after you leave your job.
- It is not uncommon for companies to use vesting schedules to distribute benefits such as stock and retirement plan contributions. You may lose some or all of your money if you leave the company before you are fully vested.
1. Take Advantage of Your FSA
It is not possible to move your Flexible Spending Account (FSA) from one job to the next. Funds must be used before resigning, or you lose them altogether. FSA accounts allow you to use the maximum amount regardless of how much you contribute when you leave. Dependent care accounts allow you to use your contributions up to your final paycheck.
FSA plans usually provide a grace period following your departure. Only eligible expenses incurred before or on your final employment day will be reimbursed, so make sure you have antihistamines, antibacterial hand gel, and pain relievers before quitting your job.
COBRA coverage is the only exception. This may allow you to keep your healthcare FSA. In this case, you’ll continue making contributions plus any administration fees for FSAs and COBRAs.
2. Get Check-Ups and Refill Prescriptions
Make sure you schedule any routine medical appointments and stop putting off nonroutine things before your insurance runs out.
Employer-provided plans usually end on your last day or at the end of the calendar month in which you leave. So, schedule those appointments as soon as possible. It could be a great opportunity to get your appointment out of the way and figure out how to get clients for coaching business
3. Investigate Vacation and Sick Time
The way companies handle vacation and sick leave differs. Some will send you a check for unused vacation days following your departure. Some employers pay out a fixed number of hours – for example, 20 hours. In some cases, unused vacation time is forfeited when you quit.
Be sure to check your employer’s vacation policy before you submit your letter of resignation and make use of any unpaid time before you quit. Do not leave any time or money behind when it comes to vacations and sick days.
4. Take out Health Insurance
When you’re an employee with a good health plan, you might wonder why do people become entrepreneurs when they have to pay for their healthcare. There are many reasons people become entrepreneurs, and many ways to find affordable healthcare after leaving a job.
Make sure you have good health insurance after you leave your job. You can continue your employer’s coverage up to 18 months under COBRA, the Consolidated Omnibus Budget Reconciliation Act. You also have the option to enroll in your spouse’s plan or purchase a new plan if you quit – this counts as an eligible event.
More Like This: Why Should I Start a Business in 2023?
5. Do Some Research on Your 401(k) Fees
Knowing your employer’s 401(k) options and fees will help you decide what to do when you leave. If it is left where it is, it should be a conscious decision, not the default. When starting a new job, it’s a good idea to enroll in the new employer’s plan after the start date, if there is one.
If you’re starting a business and wondering, “Will my business be successful?,” consider using your 401(k) to fund your business. There is still a penalty for early withdrawal of funds, so save some money for that.
6. Make Sure You Are Aware of Your Vesting Schedules
It is not uncommon for companies to use vesting schedules to distribute benefits such as stock and retirement plan contributions. You may lose some or all of your money if you leave the company before you are fully vested.
Before you hand in your two weeks’ notice to the HR department, find out if you have full vested. Find out when the vesting milestone is and the amount you will lose before that date. You may want to stay longer to gain full ownership of your vested benefits if you are on good terms with the company. It’s an excellent time to think about the question “Why should I start a business in 2023?.”
7. Read Some Books on Becoming an Entrepreneur
If you still think you want to quit your job and start your own business, check out these books to determine your next step:
- Starting a Business Quickstart Guide: The Beginner’s Guide to Launching a Successful Small Business, Turning Your Vision into Reality and…Dream
- Start Your Own Business: The Only Start-Up Book You’ll Ever Need
- The Young Entrepreneur’s Guide to Starting a Small Business: Turn Your Ideas Into Money!
A Checklist Before Quitting Job
That’s what you need to do before you quit your job. Once you’ve taken care of all those things, you’ll have enough time to start your new role the right way or start your business knowing that you’ve tied up all the loose ends at your old job. Make sure you have contact information for people may want references from for future employers and find out how you’ll receive your last paycheck.
After you leave the company, the human resources department may contact you to do an exit interview to find out why you felt it was the right time to leave and the best way that they can improve the company for the future. That will be the last time you hear from your old employer, however.