Are you simply quitting your job? That is what you must do subsequent

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If you are among the millions of Americans who have quit their jobs in the past few months, you may be eager to see what’s next for you.

However, because our work and the rest of our lives are often intertwined in many ways, there are probably a few steps you need to take before you can completely wash your hands from your old job.

Here are some of them:

Clarify health insurance

Almost half of Americans have health insurance through their employer. If you’ve just quit your job, the best thing to do is figure out how to get new coverage as soon as possible.

Most people who quit will lose their employer-funded health insurance at the end of the calendar month, said Laurel Lucia, director of health programs at the Center for Occupational Research and Education at the University of California at Berkeley.

Unless you have another job that offers health insurance, you may be eligible for Medicaid or a subsidized plan on the Affordable Care Act marketplace. Medicaid typically includes zero or low monthly premiums, Lucia said. And marketplace plans are the cheapest they have ever had for many people thanks to the relief laws passed during the pandemic.

You can compare your options on Healthcare.gov.

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The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals who work in companies with 20 or more employees to pay to continue their job insurance for certain periods of time. The option is expensive – averaging $ 600 per month – since you are now paying for the entire plan. (And while the latest stimulus package gives people six months of free COBRA coverage, if you volunteer to quit your job, you won’t be eligible for that subsidy.)

Even if you are planning to start a new job with new insurance soon, these options may be worth considering if your coverage gap is patchy.

“This can help people keep getting the healthcare they need and avoid large bills if they have an insurance failure and use services during this time,” said Lucia.

And retirement provision

Many people also save by doing their job for retirement. If you had access to a 401 (k) plan after exiting, you will need to decide what to do with that account.

“Which one you choose is extremely important, whether you are moving to another job or wanting to take time off,” said Rita Assaf, vice president of retirement management at Fidelity.

You may not want to do anything. Most employers allow you to keep your plan with you after you quit, Assaf said. (However, if you have less than $ 5,000 in the account, the money can be transferred to an individual retirement account for you, she added.)

Although your money will keep growing, you cannot continue adding to it. And you can have limits on how much you can borrow or withdraw from your account, Assaf said.

Another option is to convert the account into an individual retirement account that can be opened with a bank or brokerage company. This allows you to continue saving. You could also withdraw funds from this account if you are under 59½ years old with no penalties if you are using it for a first time home purchase or college education.

“Make sure, however, that you research fees and expenses when choosing an IRA provider, as these can vary widely,” Assaf said.

If you move to another job right away, you may have the option to convert your old 401 (k) plan into a new one. Just having one retirement account can feel easier to work with.

“It’s important to note that not all employers will accept an inheritance from a previous employer plan, so you should check with your new employer before making any decisions,” Assaf said.

What you don’t want to do, if possible, is cash out the account, she said. You are likely to face taxes and penalties, not to mention risking your financial security if you leave work for good.

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