Walking Away From Employer Benefits Without Reading the Fine Print

When leaving a job or retiring, many employees don’t fully review the benefit continuation options available to them. Valuable benefits are often forfeited because retirees assume they end automatically.

Commonly Overlooked Opportunities

• Retiree health coverage (often more affordable or better than alternatives)

• HSA continuation or extended contribution rules

• Net Unrealized Appreciation (NUA) on employer stock, which can drastically lower taxes

• Group life insurance portability

• Long-term disability transition rules

• Rollover and distribution timing options

Small Details, Big Dollars

For example, misunderstanding NUA treatment can cause retirees to unnecessarily pay income tax instead of lower capital gains rates. Missing health-coverage deadlines can force retirees into more expensive private insurance.

Don’t Rush the Exit

Before leaving, review:

• Plan documents

• HR summaries

• Notices of continuation coverage

• Deadlines for elections

What you don’t know about your benefits can hurt you—permanently.