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Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
<h2>Leave It Where It Is</h2><p><a href="https://www.irs.gov/retirement-plans/401k-resource-guide" rel="noopener noreferrer" target="_blank">401k plans</a> differ based on the employer, but most will give you the option to leave your 401k where it is even when you don't work for them anymore.</p><p><div id="ezoic-pub-ad-placeholder-129" style="width: 100%;"> <!-- /10937338/Paypath/post-page-in-content-1 -->
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<!-- End Ezoic - In-Content 1- mid_content --></p><p>Depending on the 401k's money options, your money might be better off in the investments at your old job than moving it elsewhere. If you are happy with the investment options in the existing 401k, but not necessarily with your other options, it may be best to stay put. I personally did this with an ex-employer's 401k, because I was happy with the expense ratios and investments they offered. </p><p>Larger employers tend to offer 401k programs at lower fees. Compare any fees from your previous employer's 401k plan to whichever vehicles you are considering transferring to first. To do so, check the expense ratios of the mutual funds offered in both plans. </p><p><div id="ezoic-pub-ad-placeholder-131" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-2 -->
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<!-- End Ezoic - In-Content 2 - long_content --></p><p>Depending on how much money is in your 401k at the time you leave, it may not be a good idea to leave it and do nothing. Often, accounts with balances of $5,000 or less may be closed automatically. If this happens, the employer may end up sending you a lump sum check, or deposit the money into an IRA in your name. It's best to check with your employer first.</p><p>Know that you won't be able to make more contributions to the existing 401k once your employment ends. Withdrawal options are also limited. 401k benefits, such as retirement loans, are usually not allowed once you are no longer actively participating in the plan.</p><h2>Roll It into a 401k with Your New Employer</h2><p>Simplicity is the key to easy 401k management. The standard routine for 401ks when you switch jobs is to roll it into your new employer's retirement plan. </p><p><div id="ezoic-pub-ad-placeholder-133" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-3 -->
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<!-- End Ezoic - In-Content 3 - longer_content --></p><p>Having just one 401k to manage can be beneficial if you don't continuously dedicate time to review all your accounts. However, as we mentioned before, you should closely compare expenses and investment options before making that decision. </p><h2>Roll It into an Individual Retirement Account (IRA)</h2><p>You also have the option to roll over the funds from your 401k into an <a href="https://www.fidelity.com/building-savings/learn-about-iras/overview" rel="noopener noreferrer" target="_blank">IRA account</a> with a bank or brokerage firm, where your money will continue to grow tax-deferred.</p><p>One possible benefit of an IRA rollover is the plethora of investment options available to you. Many 401ks are limited to just a handful of mutual funds and bonds, whereas IRAs give you more choices. </p><p>Likewise, many 401ks limit the number of times in a year you can make investment changes (known as portfolio rebalancing). With IRA accounts, you're not limited to a select amount of times you can make such changes, giving you more freedom and flexibility with an IRA.</p><p>Many brokerages and banks are known for giving out incentives to new customers — and there's no shortage of handouts when it comes to opening a new IRA with them. You may be able to snag yourself a bonus while gaining more control over your retirement money. </p><p>As promising as IRA rollovers can be, it's not always going to be the best option for 401k funds. For example, let's say you've left a job for another and you're debating moving your previous 401k into an IRA or your new employer's plan. Always take into consideration employer matching contributions. Most employer's 401k programs will contribute a certain percentage or match what you put into the account. For example, let's say the program will match up to 6% of your contributions, and you contribute 6% of your salary that year which ends up being $3,000. With the employer matching contributions, you end up gaining another $3,000 for the year. If you choose the IRA, you could possibly miss out on a ton of money. </p><h2>Take the Money</h2><p>You always have the option to simply close out your 401k when you leave your job, but this is almost always a bad choice. </p><p>If you decide to take the cash when you aren't 59 ½ or older, then you will end up paying an <a href="https://www.irs.gov/newsroom/early-withdrawals-from-retirement-plans#:~:text=If%20a%20taxpayer%20took%20an,Nontaxable%20Withdrawals." rel="noopener noreferrer" target="_blank">excessive amount of taxes along with penalty fees</a> that are usually around 10%.</p><h2>Your Next Steps </h2><p>Once you have decided which rollover option to take, your first step is to set up the new account. When the account is opened, the new provider will provide you with instructions to transfer the money. Usually, this means you are in charge of contacting the former employer's plan administration and letting them know you need to make a direct rollover. </p>
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When you're evaluating the benefits of one credit card over another, you have a lot of different factors to consider, including fees, rewards, and interest rates. But does the type of credit card you choose matter at all? Is there any real difference between a Visa and a Discover card with the exact same terms?
There are four major credit card networks in the US: Visa, Mastercard, Discover, and American Express. These companies offer a network of infrastructure that allows merchants to swipe your card and then collect the money from your card issuer. They also set the fees that the merchant must pay to use the network – that's right, every time you swipe your card, the merchant must pay for the privilege of allowing you to do so.
<h2>Network Fees</h2><p>The fees that your merchant pays, also known as interchange fees, are not static; Visa and Mastercard adjust their rates twice a year. Different types of businesses also pay different rates, and they may have different fees for different tiers of credit cards and debit cards. For instance, a Visa debit card transaction at a grocery store may have a smaller interchange fee associated with it than a restaurant even if the transactions themselves cost the same amount.</p><p><div id="ezoic-pub-ad-placeholder-131" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-2 -->
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<!-- End Ezoic - In-Content 2 - long_content --></p><p>Online shopping is usually more expensive for the retailer because swiping a card is typically cheaper than typing in your card number on a website.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDk0MTY1MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NjI2NzM1M30.MH3MNW0p8UPIyMYH6b-aedqXVdQqH9nJmdykbwf0pQ4/img.jpg?width=980" id="ad46a" class="rm-shortcode" data-rm-shortcode-id="781fbe82fe00de04dabe842df673b55e" data-rm-shortcode-name="rebelmouse-image" alt="The logos of the four major credit card networks in the United States">
<small class="image-media media-caption" placeholder="Add Photo Caption...">Of the four major credit card networks in the US, Visa usually has the lowest <a href="https://www.valuepenguin.com/what-credit-card-processing-fees-costs" rel="noopener noreferrer" target="_blank">processing fees</a>. American Express often has higher fees.</small></p><p><br></p><table><tbody><tr><td>Network</td><td>Average Credit Card Processing Fee</td></tr><tr><td>Mastercard</td><td>1.55% - 2.6%</td></tr><tr><td>Visa</td><td>1.43% - 2.4%</td></tr><tr><td>Discover</td><td>1.56% - 2.3%</td></tr><tr><td>American Express</td><td>2.5% - 3.5%</td></tr></tbody></table><p>These are on top of any additional fees that the credit card networks may charge such as charge-back fees, terminal rental fees, and IRS reporting fees. These fees are paid by the merchants, but they also affect you as a consumer. American Express almost always has higher fees than Visa, Mastercard and Discover, which is why you're more likely to encounter a merchant that won't accept it. If you're in the market for a new credit card, you may want to make sure you have a Visa or Mastercard as a backup instead of only having Discover or American Express, as Visa and Mastercard were accepted at 10.7 million locations in the US at the end of 2019, compared to 10.6 million for Discover or AMEX. Costco is one merchant that only accepts Visa, and those without a Visa card may be out of luck.</p><p><div id="ezoic-pub-ad-placeholder-133" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-3 -->
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<!-- End Ezoic - In-Content 3 - longer_content --></p><h2>Issuers vs. Networks</h2><p>Pull out the credit card in your wallet and take a look at it. Chances are, if it's a Visa or Mastercard, you'll see their logo as well as the logo of the bank that issued it. That's because Visa and Mastercard are card networks, but do not actually issue the cards themselves. They merely facilitate payments between the merchant and the bank that issued the card.</p><p>On the other hand, Discover and American Express both process transactions and issue cards. As with the fees, this may not have a big impact on you as the cardholder. However, it does mean that you can't take advantage of having a card linked to your bank. if you are interested in building a deeper relationship with your bank to get better interest rates or have everything consolidated into one app, Discover and American Express may not be the strongest options.</p><p>When picking your next credit card, consider the array of cards that you already have, and ask yourself if you are interested in diversifying the different networks that you may be able to use if one retailer does not accept a certain type of card. However, as most of the practical differences are behind the scenes and don't affect you, your considerations should be given to the different types of rewards you can get through the card and the fees you will pay before you worry about which card network you might want to use.</p>
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Boeing's 737 MAX is to take to the skies once more after the go-ahead from the FAA, fueling the stock's rise.
Shares of Boeing (BA) have continued to climb this month, rising over 33% from their October 30th closing of $144.39, and have continued to climb this week.
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<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5MDcyMi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2MzE2MTg4OH0.QM6tsXHRjXKbzrUKNi0OUJN515zqPjRZvkI25XEjljE/img.jpg?width=980" id="6a1e7" class="rm-shortcode" data-rm-shortcode-id="51a89b0b4d9d6a00bd4f0a11e39e6c5b" data-rm-shortcode-name="rebelmouse-image" alt="Boeing stock value">
</p><p><br></p><p>There are a few key events contributing to this rapid rise in the stock:</p><p>1. October's quarterly report unveiled further job cuts, for the airline as well as a smaller-than-expected loss. Losses were $1.39 a share, beating out expected losses of $2.47 a share. Headcount will also shrink by <a href="http://www.fi-aeroweb.com/US-Commercial-Aircraft-Fleet.html" target="_blank">11,000.</a> Even in one of the worst markets for travel stocks in decades, investors appear to be confident in the company's long-term prospects.</p><p><div id="ezoic-pub-ad-placeholder-129" style="width: 100%;"> <!-- /10937338/Paypath/post-page-in-content-1 -->
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</script></center><p></p><p>2. With multiple COVID-19 vaccine trials reporting positive results, investors are starting to eye a post-coronavirus world where pent-up demand for travel will see millions taking to the skies. With Boeing still the market-leader in US commercial aircraft, expect that demand to trickle down to the airplane manufacturer's bottom line.</p><p>3. With the FAA clearing the 737 MAX to fly after two fatal crashes, the plane is expected to become a hot commodity once more. The planes have been grounded for 20 months while Boeing made changes to software, design, and training to reassure customers, and airlines are eager to get them flying once more. </p><p><div id="ezoic-pub-ad-placeholder-131" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-2 -->
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<!-- End Ezoic - In-Content 2 - long_content --></p><p>The 737 MAX has a longer range and <a href="https://www.nytimes.com/2020/11/18/business/boeing-737-max-faa.html" target="_blank">burns 14% less fuel</a> than Boeing's previous 737 NG, making it a strong choice for airlines' long-distance and trans-continental routes. Alaska Airlines and Ryanair are both expected to take MAX deliveries in a matter of months and US passengers could be prepared to fly in already-delivered planes as early as late December.</p><p><strong>That's not to say Boeing's rapid rise will continue.</strong> These vaccines are still awaiting FDA approval and the 737 Max still needs clearance from air safety regulators internationally including Transport Canada, Civil Aviation Administration of China, and the European Aviation Safety Agency. </p><p><div id="ezoic-pub-ad-placeholder-133" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-3 -->
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<!-- End Ezoic - In-Content 3 - longer_content --></p><p>Meanwhile, it may be an uphill battle for passengers to board a plane again after COVID-19, not the least on an airplane model that dominated the headlines following the <a href="https://www.thestreet.com/investing/boeing-posts-n..." target="_blank">crashes of Lion Air Flight 610</a> and Ethiopian Airlines Flight 302.</p><p>Positive news in the last month has allowed Boeing's stock to soar. The real question is how long will it stay up?</p>
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During open enrollment or when you start a new job, you may find that your company offers the chance to enroll in a Flexible Spending Account (FSA - registered trademark). It might seem annoying to have money deducted from your paycheck at first, but it can actually save you money on health care expenses in the long run.
<p>An FSA is an account that takes money from your paycheck and puts it into a special account that you can only spend on certain healthcare items or eligible medical services. </p><p>You can use an FSA for copays for visiting the doctor, prescriptions, and even for services like new retainers or glasses. Some of the FSA-eligible expenses you might not even think about include sunscreen, condoms, and tampons.</p><p>Parents and children of elderly might be familiar with <a href="https://www.fsafeds.com/explore/dcfsa/expenses" rel="noopener noreferrer" target="_blank">Dependent Care FSA</a>, a similar pre-tax benefit used to pay for things like after school programs and even adult daycare. </p><p><div id="ezoic-pub-ad-placeholder-131" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-2 -->
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<!-- End Ezoic - In-Content 2 - long_content --></p><p><strong>The money taken out of your paycheck is pre-tax</strong>, meaning that while you can't spend the money on just anything, if you are able to estimate your medical expenses for the next year, you can avoid paying payroll taxes on up to $2,750. </p><p>If you've had your eye on LASIK surgery (eye – LASIK, get it?) you can include extra money in your FSA contribution for the next year and <strong>pay no taxes on the money from the FSA you use to pay for the surgery.</strong> </p><p>Many plans allow you to access the full year's contribution on January 1st. This means you can use the FSA as an<strong> interest-free loan</strong> for medical expenses. The money is going to be deducted from your paycheck anyway, so why wait?</p><p>The big downside to an FSA is that you usually can't change your contribution mid-year. So, if you run out of money in the FSA funds in July, you'll have to use regular after-tax dollars to pay for qualified goods and services. </p><p><div id="ezoic-pub-ad-placeholder-133" style="width: 100%;"><!-- /10937338/Paypath/post-page-in-content-3 -->
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<!-- End Ezoic - In-Content 3 - longer_content --></p><p>Conversely, put in too much, and you might be scrambling in December to find eligible expenses to spend the money in your FSA account. <strong>An FSA is use-it-or-lose-it</strong> – you have to spend all the money that year or <em>poof</em>, it's gone. However, if you have funds remaining in your account at the end of the plan year, there is a grace period of two months and 15 day. That means you have until March 15th to spend money from the previous year. </p><p>To decide how much to contribute to an FSA, I recommend a few steps:</p><ol class="ee-ol"><li>Look at your qualified medical expenses that happen on a regular basis. If you know you're going to have a $20 copay every week for therapy or a $35 copay every six months for a checkup, take note of it.</li><li>Think about any big procedures or items you might want in the next year. If you're thinking it's about time for new prescription sunglasses, be sure to set aside some money for that.</li><li>Do some research about what FSA-eligible items you use regularly and get a rough estimate as to how much you might spend on them. I usually check out the <a href="https://fsastore.com/FSA-Eligibility-List.aspx" rel="noopener noreferrer" target="_blank">FSA Store</a> to get an idea of the different categories. If you're addicted to a certain lip balm or have been dying to try light therapy for your acne, try to get a ballpark idea of how much you're going to spend next year. I don't know what guy needs to hear this, but you probably do not need that many condoms even if they are tax-free.</li><li>I like to then add a small gross up for incidentals that may pop up (nobody plans on spraining a wrist) and any random expenses you might have (if you have to pay for parking at the hospital or something, you can use your FSA). The specific amount depends on how comfortable you are of running out of your FSA if something comes up and how much extra you can afford to set aside each week from your paycheck.</li><li>Add that all together and that's how much you should set aside in your health care FSA.</li></ol><p>Once you have your limited purpose FSA, you can use the <a href="https://play.google.com/store/apps/details?id=com.fsafeds.ezreceipts&hl=en_US&gl=US" rel="noopener noreferrer" target="_blank">FSA mobile app</a> for deadline reminders and eligibility checks. </p><p>You can retain hundreds of dollars a year in tax savings by paying your medical expenses with money from your FSA all while keeping you healthy. If your employer offers one with your health insurance benefits, I definitely recommend enrolling. Spend more on your health, and less on the internal revenue service. </p>
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