Sometimes when I look back on the last 10 years, the term ‘employer benefits’ almost seems like an oxymoron, especially given the state of the economy these days.

Still, in Part I of our “Your Great Escape” series, let’s take a look at employer financial benefits.

Your 401(k1) Plan

If you have been contributing to a company sponsored 401(k) plan, this will cease as well as your employer’s contributions when you quit your job (but you knew that already). The first thing you need to do is verify the balance based on the most current statement.

You may or may not be required to roll these funds into an IRA Rollover account after a certain time period once you leave your employer. Different companies have different requirements, so it is best to check with your plan administrator for details. Checking into your rollover options now will save you headaches about it later on.

While I cannot recommend to you which financial firm to choose for a rollover, it is important to do your homework first about IRA rollovers before talking to a financial consultant. There are a number of reputable resources on the web to learn more about IRA Rollovers.

Company Pension Plans

If your company offers a pension plan, the rules may be a bit different than that of a 401(k). Many traditional pension plans have a vesting (see definition below) component and you will need to verify whether you are fully or partially vested.

This is usually determined by how long you have been with the company and what their percentages are. For example, a company can determine that you must be employed there for 5 years before you are 100% vested.

*vesting: the process by which employers accrue non-forfeitable rights over employer contributions that are made to the employee’s qualified retirement account, usually based on years of service in the company.

Next in our “Great Escape” series: Health Insurance (I know… it’s a big issue)

Tags: 401k benefits, analyze your exit strategy

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