What you need to know about your employee benefits before retiring.
If you are planning on retiring soon, then you are probably busy getting things in order. One thing that you need to take care of is your employee benefits. To make informed coverage decisions, here’s what you should ask about your employee benefits before retiring.
- Does my employer have to offer benefits after I retire?
It’s important to understand that your employer is not required to offer you benefits when you retire. However, some companies will offer retirees “portable benefits,” they are allowed to carry into retirement.
- Can your employer cancel benefits in my retirement?
If your employer does offer portable benefits, it’s important to 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 catch 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 you cannot make additional contributions.
These are some of the important questions to ask about your employee benefits before retiring. Need assistance with your employee benefits? If so, then contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to help you with all your business insurance needs today.