I just left my job — what should I do first financially?

Start by collecting documents rather than making decisions. Save your separation paperwork, confirm your final pay and any PTO or severance terms in writing, write down the exact date each benefit ends, and keep contact details for HR and every plan administrator. Then list the cash obligations due in the next 30 days. Almost nothing else has to be decided in the first 48 hours.

I was just fired. Is the financial checklist different from being laid off?

The financial steps are largely the same. Whether a departure was voluntary, a layoff, or a termination, you still need your separation documents, your benefit end dates, your final pay details, and your retirement account information. Eligibility for unemployment benefits can differ by situation, and that determination is made by the state, not by an advisor.

What happens to my 401(k) when I leave my job?

Your vested balance remains yours. Generally there are four options: leave the assets in the former plan if the plan permits it, move them to a new employer plan if that plan accepts rollovers, roll them to an IRA, or take a distribution. Each has different tax treatment, fees, investment choices, and protections. A distribution from a pre-tax account is generally taxable and may carry an additional tax depending on your age and circumstances.

Should I cash out my 401(k) while I am between jobs?

There is no default answer, and it is worth slowing down. Cashing out is the option with the most immediate tax consequences, and it removes those dollars from tax-advantaged growth. If short-term cash is the concern, it usually helps to map your obligations and other available resources first, and to review the tax treatment with a qualified tax professional before submitting any request.

What happens to my health coverage after I leave a job?

Employer coverage typically ends on a specific date set by the plan, and there are usually time-limited options afterward, including employer continuation coverage and a special enrollment period through the Marketplace. Deadlines are strict. HealthCare.gov publishes the general rules, and your plan documents state your exact end date. Sarah does not enroll clients in health insurance.

Can I collect unemployment benefits in Wisconsin?

Eligibility is determined by the Wisconsin Department of Workforce Development based on your work history and the circumstances of your separation, not by a financial advisor. If you think you may be eligible, the state's unemployment insurance site explains how and when to file. Sarah does not file or manage unemployment claims.

What happens to my employer life and disability insurance?

Group coverage generally ends when employment ends, though some policies allow conversion or portability within a limited window after separation. The deadline is often short, so it is worth asking your benefits contact in writing what options exist and by what date. Whether replacing coverage makes sense depends on your health, budget, and what other coverage you hold.

What should I bring to a financial review after a job change?

Bring your separation paperwork, a note of each benefit termination date, recent statements for any employer retirement accounts, details of any outstanding plan loan, information about stock or equity compensation deadlines, and a rough list of monthly obligations. You do not need to bring account numbers or Social Security information to a first conversation.

How can Sarah help during a job transition?

Sarah Elizabeth DePover, MBA, is a Northwestern Mutual financial advisor in Waukesha, Wisconsin. She can help you organize the moving pieces — sequencing decisions, comparing retirement account options in general terms, reviewing protection gaps created when group coverage ends, and identifying which questions belong with a tax or legal professional. She does not provide tax or legal advice, handle unemployment claims, or enroll clients in health insurance.

How long do I have to decide what to do with my old retirement account?

Many plans allow former employees to leave assets in place, so the account decision is often not the urgent one. Time-sensitive items usually come first: benefit termination dates, coverage conversion windows, equity exercise deadlines, and any outstanding plan loan repayment terms. Your plan documents and administrator are the authoritative source for the deadlines that apply to you.

Job transition article

I Left My Job. What Should I Do Next?

Whether you resigned on your own terms or the decision was made for you, the first financial task is the same: gather information before making decisions. In the first 48 hours, collect your separation documents, confirm final pay and benefit end dates, and list the obligations due in the next month. In the first two weeks, work through cash flow, health coverage deadlines, protection that ended with the job, and your retirement account options. Very little of this has to be settled immediately — and rushing the retirement account is usually the costliest move available.

By Sarah DePover, MBA · Published and updated August 17, 2026 · 9 minute read

First, a note

A layoff or termination is not a verdict on your worth.

Jobs end for reasons that often have nothing to do with performance — restructuring, funding, acquisitions, a role that no longer exists on the org chart. Even when a departure was your own decision, the days afterward can feel disorienting because income, benefits, and routine all change at once.

The purpose of a checklist is not to make the situation feel smaller than it is. It is to shrink the number of decisions competing for your attention, so the time-sensitive ones get handled and the rest can wait until you have the facts in front of you.

First 48 hours

Gather, confirm, and protect your access.

Nothing here commits you to a decision. Each step preserves information that becomes harder to retrieve once accounts and email access are closed.

Collect your separation documents

Save the written notice, any separation or severance agreement, and anything you signed. Keep a copy somewhere outside your work accounts.

Confirm final pay, PTO, and severance in writing

Ask when your final paycheck arrives, how unused PTO is treated, and what any severance actually includes and when it is paid.

Write down every benefit termination date

Health, dental, vision, group life, disability, and any employer-paid perk each end on a specific date. Those dates drive most of the deadlines that follow.

Do not rush a retirement account withdrawal

A distribution taken in the first week is difficult to undo. Nothing about a vested balance disappears because you left, so this decision can wait for facts.

List the cash obligations due in the next 30 days

Housing, utilities, insurance premiums, loan payments, and childcare. A short written list makes the runway question answerable instead of abstract.

Preserve plan administrator contact information

Once work email and intranet access are gone, plan contacts are harder to find. Save phone numbers, portal links, and account references now.

First two weeks

Work the deadlines in order of how quickly they expire.

Coverage windows and equity deadlines tend to be shorter than retirement account decisions. Sequencing matters more than speed.

Cash-flow triage and emergency runway

Estimate how many months your accessible savings would cover at a reduced spending level, and separate fixed obligations from flexible ones. This number, more than anything else, sets how much time you have to make good decisions.

Unemployment benefits, if potentially eligible

Eligibility is determined by the state based on your work history and the circumstances of your separation. If it may apply to you, review Wisconsin's official unemployment insurance information and note the filing steps and timing.

Health coverage choices and deadlines

Employer coverage ends on a set date. Continuation coverage and a Marketplace special enrollment period are the general options, and both are time-limited. Write down each deadline the day you learn it.

HSA and FSA considerations

An HSA generally remains yours after employment ends, though whether you can keep contributing depends on the coverage you carry going forward. FSA balances follow the plan's own rules at separation. Check both against your plan documents rather than a general rule of thumb.

Life and disability coverage conversion or portability

Group coverage usually ends with employment, but some policies allow conversion or portability within a short window. Ask your benefits contact in writing what is available and by when.

Stock compensation and equity deadlines, if applicable

Options, RSUs, and similar awards often have post-separation exercise windows or vesting cutoffs. These deadlines can be among the shortest on the list, so they are worth confirming early.

401(k) or 403(b) options

Gather statements and plan rules now, decide later. The four general options and their tradeoffs are covered in the next section.

The Department of Labor's overview of protecting retirement and health benefits after job loss describes these general protections, and HealthCare.gov explains the coverage options and enrollment windows that follow losing job-based coverage.

Retirement accounts

Four general options — none of them a default.

A vested balance stays yours after you leave. What differs across these paths is taxes, fees, investment choice, protections, and access.

Leave the assets in the former employer's plan

Many plans allow former employees to stay, which keeps a familiar investment lineup and the plan's rules and protections in place. Plans differ, and some set a minimum balance or limit flexibility after separation. Your plan documents and summary plan description are the authoritative source.

Move the assets to a new employer's plan

If a new plan accepts incoming rollovers, consolidating can simplify tracking and keeps assets inside an employer plan. Not every plan accepts every contribution type, and eligibility or waiting periods may apply. Compare both plans' fee disclosures and investment lineups first.

Roll the assets into an IRA

An IRA can broaden investment choice and consolidate accounts. In a direct rollover the plan sends assets to the custodian; in an indirect (60-day) rollover the money is paid to you and generally must be redeposited within 60 days, with withholding rules that can make replacing the full amount harder. Fees, services, creditor protection, loan access, and distribution rules can differ in either direction.

Take a distribution

Cashing out is available and carries the most immediate tax consequences. Distributions from a pre-tax plan are generally taxable as income, eligible rollover distributions paid to you are typically subject to mandatory federal withholding, and an additional tax on early distributions may apply depending on your age and circumstances. Review this with a qualified tax professional before the request is submitted.

The IRS overview of retirement topics for termination of employment describes these options and the rollover rules that apply. For a longer walk-through of the tradeoffs, see what to do with an old 401(k) after changing jobs. If the departure was a layoff, the layoff 401(k), insurance, and benefits checklist covers the benefit-termination side in more detail, and what to review when employer life and disability coverage ends covers the conversion and portability deadlines.

Wisconsin resources

Where to check state-specific information.

If you are in Wisconsin

Wisconsin Department of Workforce Development — Unemployment Insurance for WorkersEligibility, filing steps, and weekly claim requirements are determined and published by the state.
HealthCare.gov — losing job-based coverageWisconsin uses the federal Marketplace, so special enrollment windows are handled there.

Sarah does not file unemployment claims, determine benefit eligibility, or enroll clients in health insurance. These links are provided so you can work directly with the agencies that do.

Job Transition Financial Checklist

Keep every step in one place.

Request the checklist and it opens right here on this page — nothing is emailed and there is no attachment.

What a job change touches

A transition rarely affects only income. Coverage that ended with the job, the retirement account left behind, and the plan you were building toward all move at the same time.

Questions people ask

Job transition questions, answered directly.

References

Where these general rules come from.

This article is educational and general in nature. It does not provide individualized investment, tax, or legal advice, and it is not a recommendation to keep, transfer, distribute, or roll over any account, or to buy or replace any insurance product. Plan rules, eligibility, and deadlines vary — review your plan documents and consult qualified tax and legal professionals about your situation. Sarah Elizabeth DePover, MBA, is a Financial Advisor with Northwestern Mutual and does not file unemployment claims or enroll clients in health insurance. Have a question? Contact Sarah.

Talk it through

Bring your separation paperwork and questions to a first conversation.

Schedule a Call Ask a question 608-695-2891