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Etsy employees: Managing an Inheritance

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Etsy employees handling an inheritance should weigh the emotional cost of their legacy against the financial gain. A financial advisor like The Retirement Group can help align such large assets with long-term retirement and investment goals so decisions today reflect past and future needs.

Getting an inheritance means much more than just receiving money. It is an opportunity to protect your family financially. We advise Etsy employees to review their financial plans now so that their inheritance fits into their existing strategy and enhances their future prospects, according to The Retirement Group advisors.

We will discuss: 'In this article:

1. The Legal & Tax Implications: Understanding inheritance laws and the need to consult with legal and tax professionals is important.

2. Emotional and Strategic Financial Planning: Emotional aspects of receiving an inheritance must be balanced against strategic financial planning for the long term.

3. Retirement and Wealth Management: Assessing the impact that an inheritance may have on retirement plans and wealth management in general, with an eye toward Etsy employees.

Heirloom wealth may be a curse or a blessing. Even if you suspect a relative has planned to include you in their will, you may have overlooked some other aspects of the inheritance process. Here are some considerations if the event does occur.

Ask a lawyer or tax expert before making any decisions about inheritance—this is informational only and not a substitute for real advice.

Take your time. If someone cared enough about you to leave you an inheritance, you may need time to mourn their death. This is vital, but most of the bigger decisions regarding your inheritance will probably wait. Sometime later you may be better able to make decisions. Neh, don't go it alone. So many laws, options and dangers exist that an expert may be necessary.

Consider your own family. An inheritance may change one's own financial strategy. Make sure you consider this.

A tax collector could come to visit. The tax consequences if you inherited an IRA are important. Distributions to non-spouse beneficiaries are required by the end of the tenth calendar year following the year of death of the account owner under the SECURE Act.

The new rule also does not require the non-spouse beneficiary to withdraw funds within 10 years, as I have learned as a Etsy employee. The money must be withdrawn by the end of the tenth calendar year following the inheritance, however. Others may include the surviving spouse of the IRA owner, disabled or chronically ill individuals, people no older than the IRA owner and minor offspring of the IRA owner.

Stay informed. The estate laws have changed many times since you thought they were the same.

Keep in mind what you should be doing in your situation. The sentiment is understandable—you may want to leave your inheritance as it is out of respect for your relative. What if the inheritance is not right for your situation now? A financial professional can help you decide whether the inheritance meets your objectives, time horizon, and risk tolerance.

Added Fact:

A study by Merrill Lynch in 2021 suggests Etsy employees handling an inheritance should consider the impact on their retirement plans. Of those who received an inheritance, 42% said it affected their retirement timeline, the study found. Some retired earlier than expected and some worked longer to cash in on the inheritance. That insight illustrates why Etsy employees considering retirement should consider how an inheritance might affect their financial goals, lifestyle decisions, and overall retirement strategy. An integrated approach combining the inheritance and long-term retirement plans may help with informed decision-making.

Added Analogy:

Managing an inheritance as a Etsy employee feels like receiving an heirloom—an extremely sentimental piece. Like you would handle such an heirloom carefully, you should handle your inheritance strategically as well. Think about holding that heirloom and realizing its significance in your life and in your family history. As you would consult experts on art preservation to determine its true value and to ensure its long-term preservation, you should also consult lawyers, tax, and financial professionals about how to manage your inheritance. Consider your inheritance a treasure—honor the past while making sound financial decisions for the future. Like an heirloom that tells generations of stories, your inheritance should be a part of your overall wealth management strategy that will live on indefinitely.

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Sources:

1. Senior Strong 'Understanding Inheritance Tax Impact on Retirees.' Senior Strong , 2023, www.seniorstrong.org . Accessed 24 Feb 2025.

2.Accounting Insights 'Managing Your Inheritance: Strategic Financial Planning Guide.' Accounting Insights , AccountingInsights Team, 2023, www.accountinginsights.org . Accessed 24 Feb 2025.

3. Kiplinger Waggoner, John. 'Don’t Count on an Inheritance for Your Retirement Plan.' Kiplinger , 27 Jan 2025, www.kiplinger.com . Accessed 24 Feb 2025.

4. CreditBrite 'How to Navigate Retirement Planning After Inheriting Assets.' CreditBrite , 2023, www.creditbrite.com . Accessed 24 Feb 2025.

5. Kiplinger’s Free E-Newsletters 'Investing, Taxes, Retirement.' Kiplinger’s Free E-Newsletters , 2025, www.kiplinger.com . Accessed 24 Feb 2025.

What type of retirement plan does Etsy offer to its employees?

Etsy offers a 401(k) retirement savings plan to help employees save for their future.

Does Etsy match employee contributions to the 401(k) plan?

Yes, Etsy provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement for Etsy employees to participate in the 401(k) plan?

Employees at Etsy are eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.

Can Etsy employees choose how to invest their 401(k) contributions?

Yes, Etsy employees can choose from a variety of investment options within the 401(k) plan to align with their retirement goals.

What is the vesting schedule for Etsy's 401(k) matching contributions?

Etsy has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own those contributions.

How can Etsy employees access their 401(k) account information?

Etsy employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.

Are there any fees associated with managing Etsy's 401(k) plan?

Yes, there may be administrative fees associated with Etsy's 401(k) plan, which are typically disclosed in the plan documents.

Can Etsy employees take loans from their 401(k) accounts?

Yes, Etsy allows employees to take loans from their 401(k) accounts under certain conditions, as outlined in the plan guidelines.

What happens to an Etsy employee's 401(k) if they leave the company?

If an Etsy employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash it out, or leave it in the Etsy plan if allowed.

Does Etsy provide financial education resources related to the 401(k) plan?

Yes, Etsy offers financial education resources and workshops to help employees make informed decisions about their 401(k) savings.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Etsy offers its employees a comprehensive retirement plan, primarily centered around a 401(k) with competitive employer matching contributions. Employees are eligible for the 401(k) plan after meeting specific criteria, such as one year of service and being at least 21 years old. The 401(k) plan at Etsy allows participants to make tax-deferred contributions, up to a maximum set by the IRS. For the year 2024, this limit is $23,000, with an additional catch-up contribution of $7,500 for employees aged 50 and over (Investopedia) (CapitalGroup NACG). The plan also includes various investment options, including mutual funds and stocks, which employees can choose from depending on their risk tolerance and retirement goals. Etsy's 401(k) plan emphasizes the importance of consistent employee participation and is structured to align with federal guidelines like ERISA, which protects retirement assets. Although Etsy does not offer a traditional pension plan, its 401(k) plan is designed to be flexible and supportive of long-term retirement savings, with employer contributions enhancing the growth potential of the plan

Restructuring Layoffs: Etsy announced in December 2023 that it would be laying off 11% of its workforce, amounting to approximately 225 employees. This move comes as the company faces a challenging macroeconomic environment and increased competition. The layoffs are expected to cost Etsy between $25 million and $30 million, primarily due to severance payments, employee benefits, and related expenses. The restructuring is aimed at achieving greater operational efficiencies and cost savings, especially in the wake of flat gross merchandise sales since 2021. Additionally, Etsy has made significant changes to its executive team, including the departure of its Chief Marketing Officer and Chief Human Resources Officer, with their responsibilities being redistributed among existing executives.

2022: Etsy employees were eligible for stock options and RSUs as part of their compensation package. Specific details about the vesting schedules and performance criteria are detailed in the company's annual report (Source: Etsy Annual Report 2022, Page 45). 2023: Etsy continued offering stock options and RSUs to its employees. The grants were generally provided based on seniority and role within the company (Source: Etsy Proxy Statement 2023, Page 38). 2024: In 2024, Etsy maintained its stock option and RSU programs. Employees in management and critical roles were prioritized for these benefits

1. Official Etsy Website Etsy Careers Page: Often provides information about employee benefits, including health benefits. Etsy Employee Handbook: If available, it may have specific details on healthcare benefits. 2. Reliable Sources and News Outlets Glassdoor: Employees often share details about their benefits here. Indeed: Offers company reviews and sometimes specific details on benefits. LinkedIn: Check for company updates or employee discussions on benefits. Forbes: May provide news or articles about employee benefits. Business Insider: Could offer insights into employee benefits and company news.