July 1 start date vs later?

[musom]

I recall that when I was in training I was advised to that upon completion of training that I should start July 1 vs starting later in the month of July. If I recall correctly, this had something to do with benefits, maybe enrolling of a 401k or another retirement plan? I just don't remember the reasoning, but it seemed quite important at that time.

Fast forward; so, now years later, I am exiting training for a faculty position in July. They have a proposed start date of July 20 or so. Does anyone know of any proposed benefits of starting later vs starting earlier. I know there may be changes such as lapse of health insurance etc. Any thoughts or advice would be greatly appreciated.

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[Pathologee]

I did the same thing as you...started a few weeks later. Once you get your 1st and 2nd paycheck, you will realize how much money you were missing out on. Regarding benefits, you become vested in most places after three years from your start date. If you dont plan on leaving, it shouldn't be a problem, but if you wanted to go to a new job you may have to wait a few extra weeks or else you would lose out on anything that you did not directly contribute. You would lose whatever employer contribution was made.

I used my three weeks to enjoy summer and play with my baby mama's kids. Though I missed out on a few grand, I look back on that time with fondness.

 

[gbwillner]

Not sure what benefits you are talking about, but one big thing i would consider is city/state taxes. If you are moving to a high tax area based on your home (not work), then starting later might mean you are not a full time resident for the tax year thus you may benefit from starting later. Other issues may include health care (COBRA) or others...

 

[icpshootyz]

You may want to discuss future benefits with your new employer. I started on July 1, and for my practice it turns out your are not eligible to join the very (very) beneficial profit-sharing retirement plan until you have worked there for a full year, and the only entry times for the plan are Jan 1 and July 1. So after exactly 1 year I was eligible for the plan and got a big boost in income for July 1-Dec 31 of that year. A coworker of mine didn't start until weeks later and was not eligible for the plan until the following Jan 31. I doubt every place has something like this, but worth looking into.

 

[musom]

Thanks for the replies. So the institution is a state-funded institution that offers immediate vesting, no 401k, but whatever the state offers (403b maybe)?

I believe what ICPshootyz is what I remember, something about the enrollment period for a retirement investment plan being different on July vs later. Sounds like it may not be applicable to my potential position. Maybe three weeks of "vacation" would serve me well.

I would probably need a month of Cobra, bet that'll be expensive...

 

[puffologist]

revisiting this old thread to see if anyone else could share their experience/thoughts on taking some time off to decompress before starting a new job post-fellowship? How much time did you take? Did you travel? Invested in Cobra?

Wondering if there are any surprise nuances pertaining to exact start date that you found out later (e.g., becoming eligible for certain benefits, loan repayment, etc.) Trying to figure out the optimal start time..

Thanks!

 

[ScubaV]

revisiting this old thread to see if anyone else could share their experience/thoughts on taking some time off to decompress before starting a new job post-fellowship? How much time did you take? Did you travel? Invested in Cobra?

Wondering if there are any surprise nuances pertaining to exact start date that you found out later (e.g., becoming eligible for certain benefits, loan repayment, etc.) Trying to figure out the optimal start time..

Thanks!

I took a month off between fellowship and starting my job, but I found out afterward that certain retirement benefits only triggered in a year with 1000 hours of accumulated work. Starting immediately wasn't really an option with my personal circumstances though, and having the month off was great mentally and for handling all the fiddly aspects of moving (driver's licenses, utilities, etc.)

 

[Guest8]

Starting immediately at my job after fellowship will end up making me a very nice chunk amount of money in the long run. At my employer the rule was you had to be with the corporation for 6 months minimum to be eligible for the corporation retirement plan, and they only added new members to the plan each Jan 1st. By starting July 1st I was eligible for the retirement plan the following Jan 1st, and that also meant I was eligible for the additional Safe Harbor corporate retirement contribution of the max ~$35K a year (at the time). So I essentially got a tax-free $35K raise after 6 months. And this was in the very early years of my career, meaning over the 30-35 years until retirement that $35K will grow and grow and grow. I had a colleague that started instead in September of that year. They weren't eligible for the retirement plan or the additional $35K until a full year later than me, missing out on that $35K entirely. Granted I don't think most jobs are offering the Safe Harbor contribution to their new employees. But things like that are definitely worth asking about.

 

[TGF beta1]

In my institution medical benefits started on the 1st of the month following the hire date, unless you are hired on the first of the month. So starting July 1st saved me a month of paying for COBRA.

 

[bauber]

I took a month off and it was great. I paid for a month of COBRA and just relaxed and found a place to live. My particular position didn't have any time specific requirements.