What is Portable Benefits?
Benefits that have been paid into or accrued in an employer-sponsored plan and that can be transferred to a new employer’s plan or to an individual who is leaving the workforce. Applies to benefits from health plans, retirement plans and most other defined-contribution plans.
Portability of benefits can be found within most 401(k) plans, 403(b) plans and health savings accounts (HSAs). Read more for examples and further explanation including related video clips and also comments
Example explains Portable Benefits
There has been a lot of recent progress in making employee benefits more portable. 401(k) and 403(b) plans can usually be rolled into a new employer’s plan or to an IRA; the Health Insurance Portability and Accountability Act (HIPAA) even ensures that pre-existing medical conditions don’t exclude a worker when moving from one group health plan to another.
The two main types of plans that don’t have portable benefits are defined-benefit plans (such as pension plans) and company-sponsored flexible spending accounts (FSAs).
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