Understand your employee benefits before retiring.
If you are getting ready to retire, then it’s time to prepare for the future. One thing to think about is keeping your health insurance. If you have health insurance through work, you may be wondering if you can carry this coverage into retirement. To understand how your employee benefits work once you retire, here are some of the questions to ask.
- Can I keep my benefits after I retire?
There are no laws that require employers to offer benefits once an employee retires. However, some companies will offer retirees “portable benefits” that they are allowed to carry into retirement.
- Will my benefits change during my retirement?
If your employer offers portable benefits, remember that they are not legally obligated to do so. This means they have the ability to adjust your benefits coverage at any time unless they have explicitly promised not to do so. To ensure that a change doesn’t take you by surprise, check the conditions of your plan regularly and take note of coverage changes.
- Do I need to cash in my 401(k) right away?
When you retire, you do not necessarily need to cash out your 401(k). If you have over $5,000 in your account, then the plan administrator must maintain it. You do not have to take withdrawals or receive required minimum distributions until April 1 of the year that you turn 70 and a half. In the meantime, you can grow your investment but cannot make additional contributions.
These are some of the employee benefits questions you should ask before retiring. Do you need help with your health insurance? If so, then contact the experts at Weaver & Associates in Arcadia, California. We are ready to assist you with all your coverage needs today.