Before You Accept a Job Offer: The Benefits Checklist

This lesson is general education about U.S. personal finance, not financial, tax or investment advice. Tax rules and limits change every year; check IRS.gov or a qualified professional for your situation.

A job offer letter leads with one number: the salary. The benefits underneath it can shift the real value of two offers by thousands of dollars a year. Work through the checklists below before you sign. Most answers come from documents your employer must make available, plus a few direct questions to HR.

Health Coverage: Cost and Waiting Period

• Request the Summary of Benefits and Coverage (SBC). This standardized summary shows a plan’s covered services and costs, so plans from different employers can be set side by side.
• Request the Summary Plan Description (SPD) too. The SPD covers eligibility rules and how the plan works in more depth. Your new employer should also send a notice of your health coverage options.
• Ask what plan types are offered. Some employers run one plan; others offer several, such as an HMO, a preferred provider option or a fee-for-service plan. If a high-deductible option appears, our PPO vs. HDHP comparison explains the trade-off.
• Ask your share of the premium. With most job-based plans, the employer pays part and the rest comes out of your paycheck. If you buy a Marketplace plan instead, the employer usually does not contribute.
• Ask how long the waiting period runs. Group plans cannot apply a waiting period longer than 90 days for someone who is otherwise eligible. Some plans start coverage sooner, and a few use the full stretch, which matters if you fill prescriptions.
• Ask whether your current doctors stay in the network. Switching providers changes both convenience and cost.
• Ask about a health savings or flexible spending account. Whether you can pair one with the plan depends on its type. HSA or FSA? How to Choose explains the difference.

Worth knowing

Leaving a job with coverage? COBRA can extend your old employer’s plan for up to 18 months, but you pay the entire premium plus a 2 percent administrative fee. You can also join a spouse’s plan within 30 days of losing coverage, or pick a Marketplace plan within 60 days before or after your coverage ends.

Retirement Match: The Details That Matter

First workplace plan? 401(k) Basics for Your First Job covers the whole setup. Then ask:

• Whether a plan exists. A new job may not offer one at all, so confirm before you assume.
• The match formula. Employers are not required to match. One company might match 100 percent of contributions up to 5 percent of salary. Another might match 50 percent, so contributing 6 percent of pay brings 3 percent from the company, for 9 percent saved in total.
• Any dollar cap. Some matches stop at a fixed amount, like $5,000 a year, with a smaller percentage applied above it. Ask where the cap sits.
• The vesting schedule. Match money can vest immediately, after 3 years of service, or on a graded schedule that raises your owned share each year. A year of service generally means 1,000 hours worked over 12 months. Leave before full vesting and some or all of the match can be forfeited. 401(k) Vesting Schedules shows how this plays out.
• Your own money. Salary deferrals are always 100 percent vested. Only employer contributions follow a schedule.
• Traditional or Roth deferrals. Traditional deferrals skip federal income tax withholding when made; Roth deferrals are taxed in the year you make them.
• Fees and flexibility. Ask for an explanation of plan management fees and how often you can change investments.

Paid Time Off and Sick Leave

• How vacation days accrue. Some employers grant a full batch at hire. Others accrue a portion each pay period, which means less time off in year one.
• Whether sick leave is separate. Some jobs combine vacation and sick time into one bank. Others keep them apart, so a flu week does not eat your planned trip.
• What happens to unused days. Payout rules differ by state and employer policy. Check with your state labor agency if the answer is unclear.
• Which holidays are paid, and any new-hire limits. Some plans restrict time off during the first months.

Insurance Benefits You Might Be Missing

• Disability coverage. Short-term and long-term disability insurance replaces part of your pay if you cannot work. Ask what share of income it replaces and how long benefits last before deciding whether to buy extra.
• Life insurance. Many employers offer a base amount at no cost with the option to buy more. Ask both questions.
• Other perks with a dollar value. Tuition help, commuter benefits and similar extras belong in the comparison.

Asking the Questions Without Awkwardness

• Put it in writing. Send HR or the recruiter a short list by email. Benefits questions are routine in hiring, and a company that resents them is telling you something.
• Name the documents. Asking directly for the SBC and the SPD gets you answers faster than describing them.
• Ask early, not at signing. You cannot weigh a match or premium you learn about after accepting.
• Escalate if answers run dry. The Department of Labor’s Employee Benefits Security Administration handles benefits questions and can connect you with a benefits advisor.

Comparing Two Offers Side by Side

Once you have answers, put them in one place. A salary gap of a few thousand dollars can shrink once benefits are priced in.

Convert the match into dollars. A 100 percent match up to 5 percent of salary is worth $2,500 a year on a $50,000 salary, if you contribute at least 5 percent and stay long enough to vest.

Common questions

What documents should I request before accepting a job offer?

Ask for the Summary of Benefits and Coverage (SBC) for covered benefits and costs, and the Summary Plan Description (SPD) for the detailed rules. Ask for the 401(k) plan’s fee schedule and match terms as well.

How long can a new employer make me wait for health coverage?

A group health plan cannot apply a waiting period longer than 90 days for someone who is otherwise eligible. Some plans start coverage sooner.

What happens to my 401(k) match if I leave the job early?

It depends on the vesting schedule. Employer contributions can vest immediately, after 3 years of service, or on a graded schedule. Money you contributed yourself is always fully yours.

How do I compare two offers fairly?

Put the answers side by side in a table: salary, monthly premium, waiting period, match formula, vesting, and paid time off. Convert the match and premiums into yearly dollars so the comparison is real.