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). Investopedia Says:
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). Related Terms:
401(k) Plan
403(b) Plan
Flexible Spending Account - FSA
Health Insurance Portability And Accountability Act - HIPAA
Health Savings Account - HSA |