<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=314834185700910&amp;ev=PageView&amp;noscript=1">

Faqs: Social Security Family Benefits for Kraft Employees and Retirees

image-table
BBB Update

Key individual tax changes from Trump's 'big beautiful' bill
Current law vs. final legislation

Current law Final legislation
Standard deduction
$15,000 single; $30,000 married filing jointly for 2025 $15,750 single; $31,500 married filing jointly for 2025
'Bonus' deduction for older adults
$1,600 for age 65 and older for 2025; $2,000 unmarried / not surviving spouse for 2025 $7,600 for age 65 and older; $8,000 for unmarried / not surviving spouse; both from 2025 through 2028
State and local tax deduction (SALT)
$10,000 limit through 2025 $40,000 limit for 2025; increases by 1% through 2029; reverts to $10,000 in 2030
Child tax credit
Max credit of $2,000 per child through 2025; refundable portion $1,700 for 2025 Max credit of $2,200 per child; refundable portion $1,700 for 2025
Estate and gift tax exemption
$13.99 million single; $27.98 million married filing jointly for 2025 $15 million single; $30 million married filing jointly for 2026
Tax on tips
N/A Deduct up to $25,000 per year from 2025 though 2028
Overtime pay
N/A Deduct up to $12,500 per taxpayer from 2025 through 2028
Auto loan interest
N/A Deduct up to $12,500 per taxpayer from 2025 through 2028
Auto loan interest
N/A Deduct up to $10,000 of annual interest on new loans from 2025 through 2028
Trump Accounts for child savings
N/A One-time $1,000 credit to account per child born between 2025 through 2028
Charitable deduction for non-itemizers
N/A after 2021 $1,000 single; $2,000 married filing jointly; permanent after 2025

Source: CNBC

Table of Contents

Understanding Social Security is one of the most important aspects of retirement income for Kraft employees and retirees. Social Security is typically viewed as a supplement to retirement income. It should never be the sole source of income, but it can be helpful in dire circumstances. A family facing obstacles such as the death of a spouse, disability, divorce, or children/parents who are financially dependent should be aware of the benefits to which they may be entitled to alleviate their financial strain.

According to a report by the Social Security Administration, as of 2021, Social Security benefits accounted for about 33% of the total income of elderly beneficiaries aged 65 and older. This highlights the importance of Social Security as a significant source of income for retirees and emphasizes the need for comprehensive retirement planning to ensure financial security in retirement.

How then do family benefits operate? In general, you will receive either a percentage of your Social Security benefit, the full value of your Social Security benefit, or a maximum benefit per family. To illustrate the distinction, let's examine some frequently asked queries from Kraft employees and retirees.

Can My Spouse Collect Social Security Based on My Work Record?

2-Aug-24-2022-06-17-52-48-PM

This is a query we frequently receive from Kraft employees and retirees, and with good reason. Yes, benefits are available to couples who have been married for at least one year. The utmost amount they can collect is 50 percent of the Primary Insurance Amount, also known as Full Retirement Age, if they wait until their own Full Retirement Age, or a reduced amount beginning at age 62. 1

Can My Ex-Spouse Collect Social Security Based on My Work Record?

3-Aug-24-2022-06-17-52-43-PM

Answer: Yes. If you were married to your ex-spouse for at least 10 years, he or she is currently unmarried and at least 62 years old. You are eligible for the same benefits as a current spouse. 1

What Benefits Are Available to My Family in the Event That I Pass Away?

1-Aug-24-2022-06-17-51-56-PM

Working with a large number of Kraft employees and retirees has revealed a great deal of concern regarding the impact of mortality on the financial security of the family. As a consequence, this question comes up quite a bit. There are two aspects of the answer to consider. Yes. Your unmarried dependent children under the age of 18, or 19 if attending a primary or secondary school, or disabled as long as the disability occurred before the age of 22, are eligible to receive 75% of their deceased parent's PIA, up to a maximum family benefit. If you are providing for a child under the age of 16, your spouse is eligible to receive up to 75 percent of the PIA, up to a maximum per family.

In this circumstance, the family has immediate access to Social Security to supplement their income. Second, a widower can access the Social Security benefit of their deceased spouse at age 60. This is two years sooner than the standard spouse benefit. As with any early receipt of Social Security benefits, the full benefit will be subject to a reduction. 1

Featured Video

Articles you may find interesting:

Loading...

Are My Dependent Children Eligible for Social Security Based on My Work Record?

4-Aug-24-2022-06-17-53-03-PM

This is an additional worry for many Kraft employees and retirees with children. Yes, the eligibility requirements are the same as if you were deceased. The only difference would be that your children could only obtain 50% of your PIA. 1

Is Anyone Else Able to Collect Benefits Off of My Record?

21-3

Answer: Yes. Assuming you are deceased, and you provided more than 50 percent of their support prior to your death, your dependent parents are eligible to receive benefits from your record. This is the least prevalent available family benefit. 1 It is essential to keep in mind that a family member receiving Social Security benefits on your record will not reduce the number of benefits you are entitled to receive.

Applying for the benefits to which you and your family are entitled can generate significant income for your family and alleviate the financial strain that a life-altering event may cause. Over the years, we've spoken with numerous Kraft employees and retirees, and we've learned that every situation is unique. We can help you determine when and how to apply for your Social Security benefits with the assistance of our professional financial advisors.

About The Retirement Group

4-Nov-04-2022-04-27-01-6155-PM

Understanding Social Security and its family benefits is like having a well-crafted safety net for your retirement journey. Just as a skilled mountaineer carefully prepares their equipment before embarking on a challenging climb, Kraft employees and retirees should equip themselves with knowledge about Social Security's family benefits. Think of Social Security as a versatile toolset, offering various ropes and harnesses to support you and your loved ones during unexpected twists and turns. Just as a climber relies on their ropes to provide stability and security, Social Security can provide a reliable supplement to your retirement income and offer relief during difficult circumstances like the loss of a spouse, disability, divorce, or financial dependence. It's important to explore the different ropes available, such as spousal benefits, benefits for ex-spouses, and benefits for dependent children and parents. By understanding how these ropes work, you can navigate the retirement mountain with confidence, knowing that you and your family are supported along the way.

The Retirement Group is a nation-wide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.

Sources

19-3

Sources

1-Aug-15-2022-02-32-20-96-PM
  1. What to do with an Early Retirement Ebook

  2. Social Security Ebook

  3. Lump Sum vs. Annuity Ebook

  4. 401(k) Rollover Strategies Ebook

  5. Closing the Retirement Gap Ebook

  6. Stern.NYU.edu, 2021

  7. S&P 500 return includes price appreciation and reinvestment of dividends. Treasury bond return includes coupon and price appreciation. Treasury bill return is a three-month rate. Past performance is no guarantee of future results. Indexes are not available for direct investment. Historical performance does not reflect taxes and fees associated with the management of an actual portfolio.

  8. Gains and Losses: What Are Your Prospects For A Successful Project, 2020

  9. This example is for illustrative purposes only and does not represent an actual investment or combination of investments. Annual contributions are made at the beginning of the compounding period. This hypothetical example does not reflect taxes or any fees. Past performance does not guarantee future returns.

How does the pension plan offered by Kraft Foods Global, Inc. compare to standard retirement plans in terms of employer contribution allocation, and what specific policies should employees be aware of when considering their retirement options through Kraft Foods Global, Inc.?

Kraft Foods Global, Inc. Pension Plan vs. Standard Retirement Plans: The pension plan offered by Kraft Foods Global, Inc. operates as a defined benefit plan, which allocates employer contributions based on years of service and compensation, ensuring steady retirement income based on a formula. This contrasts with standard retirement plans like 401(k)s, where contributions are often employee-driven and subject to market performance. Employees should understand that the guaranteed nature of a pension provides long-term stability, but they must consider the plan’s specific terms regarding eligibility, vesting, and distribution options.

In what ways do the eligibility requirements for contributions to the retirement plans at Kraft Foods Global, Inc. align with IRS regulations for 2024, and what should employees know about these rules when planning their retirement funds?

Eligibility and IRS Regulations for 2024: The eligibility requirements for Kraft Foods Global, Inc.’s retirement plan align with IRS regulations by requiring one year of service for plan participation, with no minimum age requirement. This is typical for defined benefit plans and is in line with IRS standards for qualified plans. Employees planning their retirement funds should ensure they meet the service requirements and understand that contributions are employer-funded rather than employee-driven, unlike other retirement plans that follow IRS contribution limits​(Kraft Foods Global Inc_…).

Considering the defined benefit plan structure of Kraft Foods Global, Inc., how are distributions processed at retirement, and what potential tax implications should employees consider when deciding between a lump sum or annuity option upon retirement?

Distribution Options and Tax Implications: Kraft Foods Global, Inc.’s defined benefit plan offers both lump sum and annuity options for retirement distributions. Employees must carefully consider tax implications: lump sums may be subject to immediate taxation, while annuity payments spread income over time, potentially offering tax advantages. Employees should evaluate their financial needs and tax situation to choose the most suitable option for their retirement​(Kraft Foods Global Inc_…).

How does Kraft Foods Global, Inc. ensure the stability and sustainability of its retirement funds, known as the retirement plan funding levels, and what measures are in place to protect employees' interests in case of economic downturns?

Retirement Plan Stability and Economic Downturns: Kraft Foods Global, Inc. ensures the stability and sustainability of its retirement funds through a well-funded pension plan, with funding levels reported at over 100%. This level of funding offers protection against economic downturns, safeguarding employee interests. The company also maintains a significant fidelity bond, providing additional security for plan participants in case of adverse financial events​(Kraft Foods Global Inc_…).

What resources are available to employees of Kraft Foods Global, Inc. for financial planning assistance related to their retirement, and how can knowledge of these resources influence their decisions regarding retirement savings and benefits?

Financial Planning Resources: Employees of Kraft Foods Global, Inc. have access to various resources, such as retirement plan summaries and consultations with financial planners. These tools can help employees make informed decisions regarding their retirement savings and benefits, potentially influencing their strategies for maximizing contributions and taking advantage of plan features like early retirement options​(Kraft Foods Global Inc_…).

How should employees at Kraft Foods Global, Inc. approach the process for requesting a distribution from their retirement plan, and what specific information is required to expedite this process effectively?

Requesting a Distribution: Employees at Kraft Foods Global, Inc. must contact the plan administrator to request a distribution. Providing accurate personal information, retirement dates, and preferred payment methods is essential to expedite the process. It’s crucial to ensure that all documentation is complete to avoid delays​(Kraft Foods Global Inc_…).

How does the participation in the additional retirement plans offered by Kraft Foods Global, Inc., such as the Thrift Investment Plan, benefit employees in the context of overall retirement savings and IRS contribution limits for 2024?

Additional Retirement Plans and IRS Contribution Limits: Participation in Kraft Foods Global, Inc.’s Thrift Investment Plan allows employees to enhance their retirement savings while adhering to IRS contribution limits for 2024. This plan complements the pension plan by offering a defined contribution option, giving employees the chance to maximize their overall retirement savings through a combination of employer contributions and personal investments​(Kraft Foods Global Inc_…).

What communication channels does Kraft Foods Global, Inc. provide for employees to ask questions or seek clarification regarding their retirement benefits, and what should employees include in their inquiries to receive detailed answers?

Communication Channels for Retirement Benefits: Kraft Foods Global, Inc. provides clear communication channels through its HR department and plan administrators, where employees can ask detailed questions about their retirement benefits. It’s advisable for employees to include specific details in their inquiries, such as their years of service and expected retirement dates, to receive thorough responses​(Kraft Foods Global Inc_…).

How do the overall retirement plan offerings at Kraft Foods Global, Inc. facilitate long-term financial security for employees compared to industry standards, and what unique features should employees leverage to maximize their retirement savings?

Maximizing Long-Term Financial Security: The retirement plan offerings at Kraft Foods Global, Inc. focus on long-term financial security by providing guaranteed income through its defined benefit structure. Compared to industry standards, this approach offers employees a more predictable and stable source of retirement income. Employees should leverage features like early retirement options and understand their full benefit potential to optimize their financial outcomes​(Kraft Foods Global Inc_…).

What strategies should employees at Kraft Foods Global, Inc. employ to ensure they remain informed about ongoing changes in retirement planning regulations and plan offerings as they approach retirement, especially in light of any adjustments to IRS rules or company policies?

Staying Informed on Retirement Plan Changes: Employees should stay informed about ongoing changes in retirement planning regulations and company policies by regularly reviewing updates from Kraft Foods Global, Inc. and keeping track of IRS adjustments. Attending company-provided financial planning seminars and consulting with financial advisors can help ensure that employees are well-prepared for retirement, especially as IRS rules or plan offerings evolve​(Kraft Foods Global Inc_…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Kraft Heinz offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Kraft Heinz provides financial planning resources and tools to help employees manage their retirement savings.
Kraft Heinz is undergoing a major restructuring in 2024, including layoffs and changes to its employee benefits to improve cost efficiency. The company continues to focus on its core food and beverage businesses. Understanding these changes is crucial in today's economic and business landscape, as they impact the company's strategic priorities and financial health.
Kraft Heinz includes RSUs in its employee compensation packages, which vest over a specific period and convert into shares. Stock options are also provided, enabling employees to purchase shares at a predetermined price.
New call-to-action

Additional Articles

Check Out Articles for Kraft employees

Loading...

Further Information for Kraft* Employees

*Please see disclaimer for more information

Relevant Articles

Check Out Articles for Kraft employees