Money Considerations When Changing Jobs

Consider cost of living - A salary of $100,000 will go a lot farther in Iowa than it will in San Francisco, where housing and other costs are comparatively high. Will your new job offer a salary increase in name only or will it improve your standard of living?

Consider next year's tax bill - If you move out of state for a new job, you may get more than potential tax deductions. You may get benefits that you have to declare as income. For example, you'll owe taxes on a signing bonus and on closing costs your new employer pays on your old home or a new home.

Do the rollover - Don't give in to temptation and cash in your old 401 (k) retirement plan. You will owe income taxes, you may pay a 10% federal tax penalty on the amount if you are under age 591/2 and the distribution could be subject to a 20% withholding requirement. Instead, roll it over into an IRA.