Hi. I've just accepted a new job and my first day will be November 4th. I'm very excited about the new opportunity because I get to work from home 48 weeks a year (no commute, lots of saved time & money, much freer access for my kids), what I'll be doing is interesting and rewarding to me, and the base salary is a $15k/year increase, with the additional likelihood of $15k/year bonuses. It's all good!
But, there are some things that are completely new to me that I'm hoping you all can help me with. First: where I've been working for years is a non-profit and they've paid my medical insurance premiums in full for me. All I've had to pay is co-payments and part of a deductible (but they also put $1500/year into an account to pay for those things with). The new place offers 3 medical insurance plans, but given I'm a remote employee in a different state, everyone says the "C" plan will be the best choice for me. So for this plan, my premium for me & my kids will be $63.13 per pay period (twice a month). The annual deductible for us is $6,000, with an annual out-of-pocket maximum of $6,000 also. Preventive care visits have no deductible or copay, but everything else is completely paid for by me, until I hit the deductible, then everything is 100% covered by insurance. Along with this plan, I can set up a Health Saving Account which says this:
"Health Savings Account
A Health Savings Account (HSA) is available when you enroll in Plan C. An HSA is a personal health
care bank account that you can use to pay for deductibles, coinsurance and over-the-counter
medications with a doctor’s prescription. The annual contribution maximum for individual coverage is $3,250 for individuals – and $6,450 for family coverage per IRS regulations. The company will provide an HSA employer contribution of $600 for individuals or $1,200 for families,
which is deposited on a per-pay-period basis."
I can also set up one of these:
"Limited Purpose Flexible Spending Account
If you are enrolled in Medical Plan C, you may participate in a Limited Purpose Flexible Spending
Account. This account is designed to compliment a Health Savings Account and allows for
reimbursement of eligible dental and vision expenses that you may have. You must decide how
much to set aside for this account. You may contribute up to $2,500 in a Limited Purpose Flexible
Spending Account." This one is a "use it or lose it" option, meaning that if I don't spend everything in the account by the end of the year, it gets lost. Apparently this money is taken out before taxes are calculated and that's why you must use it or lose it.
I am not sure how much I should choose to put into the Health Savings Account or the Limited Purpose Flexible Spending Account, or if I should even get one of each. The HSA seems like a no-brainer because my employer will contribute to it as well, but some folks tell me the tax benefits of the LPFSA are too good to ignore also. So, should I do both accounts and, if so, how much should I put in each account, each year?
The other question is that, right now, I have a 403(b) account with only about $5000 in it. I've been contributing just the amount the company will match, as I am still in a debt emergency (ie; I have some that isn't a mortgage). The new place, being a for-profit company, has a 401(k) instead of a 403(b). Can I still roll over my current 403(b) into it? Are all the rules/considerations the same? My new place doesn't allow you to participate in the 401(k) until you've been there for 60 days, but I understand there's a time limit on rolling it over, so I'm worried I'll exceed that limit due to this 60 day rule. Any guidance on this process?
Thank you all for any help you can offer!