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Fox Employees: Your Essential Guide to a Smooth 401(k) Rollover in Just Five Steps

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You have several options for rolling over your employer-sponsored 401(k) retirement plan if you have quit working for Fox. Choosing where to roll over your account can potentially save you tens of thousands of dollars – or cost you the same amount if you choose incorrectly.

Rolling over a 401(k) with high-fee investments into an individual retirement account (IRA) with lower-cost investment options or into your current employer's 401(k) plan could save you a significant amount of money. According to the U.S. Department of Labor, a 1 percent increase in fees could result in a 28 percent decrease in your retirement account balance.

If you work for Fox and a rollover makes sense for you, here's how to transfer your old 401(k) funds to a new one.

 

How to transfer your 401(k)

  1. Follow these five steps to get your 401(k) rollover underway:
  2. Determine the type of account you desire.
  3. Determine where you wish the funds to go.
  4. Open an account and learn how to execute a rollover.
  5. Commence the rollover procedure
  6. Act quickly

 

What is a rollover of a 401(k)?

Fox employees should know that a 401(k) rollover is the transfer of funds from one 401(k) plan to another 401(k) plan or an IRA. The IRS allows you 60 days from the date you receive a distribution from an IRA or retirement plan to roll it into another plan or IRA.

 

How to get started with your 401(k)  rollover.

  1. Determine the type of account you desire.

Your first choice is the type of account to which you will transfer your funds, and this choice is heavily influenced by the options available to you and your desire to invest.

For Fox employees considering a rollover, you have two major options: transfer to your current 401(k) or transfer to an IRA. As you evaluate your options, think about the following questions:

 

  • Do you want to invest the money yourself, or would you prefer someone else to do it? A self-directed IRA may be a viable option for those who wish to manage their own finances. Even if you want someone else to manage your IRA, you may want to consider a robo-advisor, which can tailor a portfolio to your needs. However, 'do-it-for-me' investors may prefer a rollover into their current employer's 401(k) plan.
  • Does your old 401(k) offer low-cost investment options with the potential for high returns, and does your current 401(k) offer comparable or superior options? If you are considering a rollover to your current 401(k) plan, you should ensure that it is a better fit than your previous plan. If not, a rollover into an IRA could make a lot of sense, as you will be able to invest in any marketable asset. Otherwise, maybe it makes sense to keep your old 401 (k).
  • Do you have access to financial planners through your current 401(k) plan? In this case, it may be prudent to roll your old 401(k) into your new 401(k) (k). If you transfer funds to an IRA, you must choose investments and manage the account yourself or hire a professional.

 

Fox employees must keep in mind that prior to transferring funds, you must determine which type of account best suits your situation and needs. Those who need assistance with investing may benefit more from a rollover to their current 401(k) plan, whereas those who want to invest the money themselves and have the knowledge to do so may prefer an IRA.

 

  1. Determine where the funds will go

For Fox employees transferring funds from an old 401(k) to a new one, you know exactly where your money is going. However, if you're rolling it over to an IRA, you'll need to open one at a bank or brokerage if you haven't already.

If you already have an IRA, you may be able to rollover your 401(k) into it, or you can create a new IRA.

 

  1. Activate your account and learn how to execute a  rollover.

Open your IRA account once you've found a brokerage or robo-advisor that meets your needs. Once the account is created, you can begin the process of transferring your 401(k) funds into it.

Fox employees should keep in mind that each brokerage and robo-advisor has its own rollover procedure, so you will need to contact the institution for your new account to determine the exact requirements. You must strictly adhere to their procedures. If you are rolling over funds into your current 401(k), contact the administrator of your new plan for instructions.

For instance, if the 401(k) company is sending a check, your IRA institution may request that the check be written in a specific manner and may require that your IRA account number be included on the check.

Again, carefully adhere to your institution's instructions to avoid complications.

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  1. Commence the rollover procedure

If you are working for Fox and wish to complete a rollover, you will need to fill out paperwork, and may need to communicate with your providers. You have several options for transferring funds from the old provider to the new one, but direct rollover is your best option.

In a direct rollover, your 401(k) funds are transferred directly into your new account without your intervention. It is essential to specify a direct rollover so that the check is not made payable to you. Withdrawals made prior to age 59 1/2 are subject to a 20 percent mandatory tax withholding and a 10 percent additional IRS penalty.

 

  1. Act quickly

For Fox employees, you have 60 days from the date you receive your retirement plan distribution to deposit it into a qualified account if you are conducting a rollover. Otherwise, the event will be taxable.

Again, each institution may have its own method for transferring funds. Your 401(k) administrator can send a paper check to you or the institution where you are opening your IRA, or the funds can be transferred electronically via wire transfer.

If you receive a check in the mail, you must ensure that it is deposited into your new account. Act swiftly.

 

What if you already have a 401(k) with your former employer?

For Fox employees who have a 401(k) from a former employer, you should evaluate whether a rollover makes sense. You may want to consult a tax expert to ensure that you are making the best decision for your specific circumstances.

Here are some options to consider as you consider what to do with your old 401(k):

 

Maintain your 401(k) with your former employer.

In this instance, you will not make any changes. Ensure that you actively monitor the performance of your investments in the plan and remain informed of any significant changes.

If you enjoy your current investment options and are paying low fees for them, this option may be suitable for you.

Transfer your 401(k) into an IRA.

For Fox employees wanting to roll over their 401(k) and avoid a taxable event, this option makes sense. Existing IRA holders may be able to consolidate their IRAs into a single account. In addition, an IRA provides numerous investment options, such as low-cost mutual funds and ETFs.

Greg McBride, CFA, chief financial analyst, notes in a Bankrate article that a multitude of mutual fund companies and brokerages offer no-load mutual funds and commission-free ETFs.

'Also, make sure you meet any account minimums to avoid account maintenance fees for having a low balance,' McBride advises. 'Index-based mutual funds will have the lowest expense ratios. Therefore, there is a way to significantly reduce the number of unnecessary fees.'

Ensure that your IRA institution will accept the type of rollover you wish to make by contacting it beforehand.

In a Bankrate article, Michael Landsberg, CPA/PFS, principal at wealth management firm Homrich Berg claims that 'according to the letter of the law, it is acceptable [to roll a 401(k) into a Roth IRA]. In practice, however, your 401(k) plan may not permit it”

 

Transfer your previous 401(k) to your new employer's 401(k) plan

For Fox employees, If your new employer's 401(k) plan accepts rollovers and the investment options are superior or less expensive than your previous employer's 401(k), this may be a good option. You must conduct research to determine which plan is superior and meets your needs.

 

The benefits and drawbacks of rolling over a 401(k)

Advantages of a 401(k) rollover:

  • You can consolidate your 401(k) accounts.

For Fox employees who switch jobs frequently, you may have multiple scattered 401(k) accounts. The more accounts you have, the more difficult it may be to make deliberate choices. By keeping your retirement funds in a single location, you may be able to manage them more prudently.

  • In an IRA, you will have more investment options.

With a 401(k), your investment and account options are limited to those offered by the plan. An IRA can provide you with a wider range of investment options. In an IRA, you may be able to invest in stocks, bonds, and other vehicles that your 401(k) may not permit.

You cannot contribute to your previous employer's 401(k) plan. But if you roll this money over into a traditional IRA, you can contribute up to the annual maximum to this traditional IRA over time. You must adhere to the IRA contribution rules.

  • You'll have the option to move the account wherever you'd like.

 

If you already have a financial advisor or financial planner with whom you work, for example, you can take your IRA funds to any advisor you choose. Or perhaps you already have a brokerage where a portion of your funds are managed, and you wish to move all of your funds there.

 

Negative aspects of rolling over your 401(k)

  • You like your current 401 (k)

If the funds in your old 401(k) do not charge excessive fees, you may wish to remain with that plan. Compare the plan's fund fees to those of an individual retirement account (IRA).

For Fox employees, in many situations, 'If it isn't broken, don't fix it' is the best piece of advice. If you like your current investment options, it may make sense to remain in your previous employer's 401(k) plan.

  • A 401(k) may offer advantages that an IRA does not.

If you keep your retirement savings in a 401(k), you may be able to withdraw this money at age 55 without incurring an additional 10% early withdrawal tax, as you would if you kept your savings in an IRA.

For Fox employees with a 401(k), you can avoid this penalty if distributions are made to you after leaving your employer in or after the year in which you turned 55.

This loophole is inapplicable to IRAs, where withdrawals before age 59 1/2 incur a 10% penalty.

  1. You cannot borrow from an IRA, as you can from a 401(k)

Numerous 401(k) plans allow for loans. Although withdrawals from your retirement account are not recommended, it may be prudent to have this option available in the event of a dire emergency or temporary bind.

If you rollover your funds into an IRA, however, you will not be eligible for a 401(k) loan. You may wish to roll over your old 401(k) into your new 401(k) in order to maintain your ability to borrow money.

 

Added factors to consider

In a 401(k), net unrealized appreciation (NUA) and company stock are allowed

For Fox employees, transferring company stock held in a 401(k) to a taxable brokerage account to take advantage of net unrealized appreciation, or NUA, could save you a significant amount of money on taxes. NUA is the difference between the price you paid for company stock in your 401(k) and its current market value.

For instance, if you purchased company stock for $20,000 and it is now worth $100,000, the NUA is $80,000.

The advantage of the NUA strategy is that it allows you to avoid paying ordinary income tax on these distributions of stock from your retirement account. According to Landsberg, this can reach up to 37 percent, the highest tax bracket at present.

You will instead benefit from capital gains tax treatment, which even at the highest tax bracket is only 20%. However, high earners will be subject to an additional 3.8% net investment income tax. And a NUA may be subject to a 10% early withdrawal tax if the funds are transferred before age 59 1/2.

NUA makes the most sense when the disparity between tax rates is greater.

According to a Bankrate article, 'Net unrealized appreciation is a very potent instrument if used properly,' says Landsberg. Therefore, if you properly apply the NUA rules, you can be inventive and potentially earn a substantial windfall.

 

Beware 401(k) balance minimums

For Fox employees, If you have left the company and your account balance is less than $5,000, your former employer may require you to transfer it. Consider rolling it over into the plan of your new employer or into an IRA.

According to FINRA, if your previous 401(k) has a balance of less than $1,000, your employer has the option of cashing out your accounts.

Always keep track of your hard-earned 401(k) funds and ensure that they are invested or maintained in a sensible account.

 

Rollover Facts to Consider:

According to a  Pew survey :

  1. Some recent retirees transferred their savings to IRAs (46%), while others reported leaving their savings in their most recent employer plan (54%).
    1. In contrast, near retirees were less likely to plan on leaving their savings with their employer plan at retirement. 
  2. A quarter of near retirees said they were unsure about what they planned to do with their retirement savings, and only 16% said they would roll over their savings into an IRA.
  3. Half of near retirees and 55% of retirees cited their preference for their employer-sponsored plan’s investment options as the most important reason for not moving their retirement savings from their current plan.
  4. Near retirees who planned to roll over their savings into an IRA were motivated by a desire to have greater control over their investments. Although greater control was also a factor for retirees, they were more likely to say that they rolled over their savings in order to gain access to professional advice.

How does 21st Century Fox America Inc. determine the funding status of its pension plan, and what key metrics are utilized in evaluating its financial health? Employees may want to understand the significance of the Funding Target Attainment Percentage and how it influences their retirement benefits, especially as it pertains to both the general and specific circumstances affecting funding levels.

Funding Status and Metrics: 21st Century Fox America Inc. determines the funding status of its pension plan by calculating the Funding Target Attainment Percentage (FTAP), which divides the plan’s net assets by its liabilities. For the 2022 plan year, the FTAP was 125.79%. This metric is crucial because it indicates how well the plan is funded. A high FTAP suggests that the plan is well-funded and capable of meeting its obligations, which directly influences employees' retirement security​(21st Century Fox Americ…).

What considerations does 21st Century Fox America Inc. take into account when deciding the investment strategies for its pension plan? Employees should be informed about the policy guidelines that govern the allocation of the plan's assets, including which asset classes are prioritized and the expected outcomes from such investment decisions.

Investment Strategy Considerations: The company follows specific investment policies that establish guidelines for asset allocation within the pension plan. These policies ensure that assets are allocated among major categories like equities, fixed income, and cash. The fiduciaries of the plan determine the target ranges for each category, aiming for stable returns and long-term viability​(21st Century Fox Americ…).

How can employees of 21st Century Fox America Inc. assess their rights and the processes involved should the pension plan terminate? This includes evaluating the stipulations provided by federal laws that dictate what happens to vested benefits upon termination and what steps participants can take to secure their entitlements.

Rights and Pension Termination: Should the pension plan terminate, federal law requires 21st Century Fox America Inc. to follow certain procedures. If fully funded, the plan would undergo a standard termination, where an insurance company provides annuities, or a lump sum may be offered. In underfunded cases, a distress termination could occur, where the Pension Benefit Guaranty Corporation (PBGC) takes over​(21st Century Fox Americ…).

What are the recent changes in federal regulations influencing how pension plans, such as the one at 21st Century Fox America Inc., calculate their liabilities? Employees need to grasp the implications of these regulations on their future benefits, specifically regarding the new methodologies for determining financial sufficiency.

Impact of Federal Regulations: Recent changes in federal regulations, including the American Rescue Plan Act of 2021, adjusted the methodologies for calculating pension liabilities. Plans now incorporate a 25-year interest rate average, which typically results in higher interest rates and lower liabilities, affecting the funding status and employer contributions​(21st Century Fox Americ…).

In the context of 21st Century Fox America Inc., what is the role of the Pension Benefit Guaranty Corporation (PBGC) in guaranteeing pension benefits, and what are the criteria for ensuring benefits remain secure? Understanding how the PBGC functions and its limits is critical for employees planning their retirements.

Role of PBGC: The PBGC provides a guarantee for vested pension benefits in the event of plan termination. The guarantee is subject to legal limits, which vary depending on the participant’s age and the plan’s termination date. For 2023, the maximum annual benefit for a 65-year-old retiree was $81,000​(21st Century Fox Americ…).

What steps can employees take to access information related to their pension plan from 21st Century Fox America Inc., and how can they ensure they receive timely updates regarding their benefits? Details about the channels available for inquiries and the importance of keeping informed about funding levels and benefits are crucial.

Accessing Pension Information: Employees can access information about their pension plan through the Disney Benefits Center by calling (800) 354-3970. Staying informed about the plan’s funding levels and benefits is essential, and employees are encouraged to review the annual funding notice for updates​(21st Century Fox Americ…).

How does 21st Century Fox America Inc. manage the risks associated with its pension investments, particularly in a volatile market climate? Employees could benefit from insights into risk management strategies and how they affect long-term pension viability.

Risk Management in Investments: To manage investment risks, 21st Century Fox America Inc. adheres to a diversified asset allocation strategy. This approach helps mitigate market volatility and ensures the long-term sustainability of pension benefits despite changing economic conditions​(21st Century Fox Americ…).

In what ways can a participant's years of service and salary history with 21st Century Fox America Inc. affect their retirement benefits, and what mechanisms are in place to ensure accurate benefit calculations? Exploring the relationship between service, salary, and pension outcomes can help clarify employee expectations.

Service and Salary Impact on Benefits: The pension plan is structured to account for employees' years of service and salary history in calculating their retirement benefits. These factors directly affect the benefit amount, and the plan ensures that accurate records are maintained to reflect this information​(21st Century Fox Americ…).

What unique benefits does 21st Century Fox America Inc. offer that may enhance its pension plan, and how can employees maximize their advantages while planning for retirement? Understanding available supplemental benefits can empower employees in their retirement planning journeys.

Enhancing Pension Benefits: Employees of 21st Century Fox America Inc. may benefit from supplemental retirement benefits, including early retirement options or disability benefits. Understanding and maximizing these options can significantly impact long-term retirement planning​(21st Century Fox Americ…).

How can employees of 21st Century Fox America Inc. get in touch with the Disney Benefits Center to inquire further about their employee benefits or to clarify any aspects of the pension plan? Having clear contact information and the process for accessing support can greatly assist employees in navigating their retirement preparation.

Contacting the Disney Benefits Center: Employees can reach out to the Disney Benefits Center at (800) 354-3970 for any inquiries related to their pension plan or other employee benefits. This resource is crucial for clarifying benefit details and addressing any concerns​(21st Century Fox Americ…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Fox Corporation offers a 401(k) plan and a pension plan to its employees. The 401(k) plan includes a company match, typically up to 4-6% of the employee's salary, with a partial match beyond that percentage. The company also offers a defined benefit pension plan, although specific details like the pension formula, years of service, or age qualifications were not detailed in the sources reviewed. However, Fox emphasizes comprehensive benefits, including financial security through retirement plans.
In 2023, Fox News underwent significant layoffs as part of a broader restructuring effort, largely driven by the financial strain following the $787.5 million lawsuit settlement with Dominion Voting Systems. These layoffs, including those from the investigative unit, are believed to be part of cost-cutting measures. This is critical to address due to the current economic and political environment, where the company must adjust to financial pressures while maintaining investor confidence and adapting to changing tax regulations.
Stock Options: Fox Corporation offers stock options that allow employees to purchase company stock at a predetermined price, known as the exercise or strike price, after the options have vested. Vesting periods for these options vary, typically ranging from 1 to 5 years. Once vested, employees can exercise their options within a specified period, generally up to 10 years from the grant date. The value of the stock options depends on the market price of Fox Corporation’s stock at the time of exercise; if the market price is higher than the exercise price, the options are "in the money" and can be profitable. Stock options at Fox are primarily available to executives and senior management, although some plans extend to other key employees depending on their role within the company. Restricted Stock Units (RSUs): Fox Corporation also provides RSUs, which represent a grant of company stock that is transferred to employees once the RSUs vest. Unlike stock options, RSUs do not require the employee to purchase the stock; instead, the shares are automatically granted at no cost upon vesting. The value of RSUs is more predictable, as it is tied directly to the market value of Fox Corporation’s stock at the time of vesting. The vested shares are considered taxable income and are typically subject to withholding for taxes. RSUs at Fox are usually granted to a broader group of employees, including executives, senior management, and other employees as part of their annual performance reviews or hiring packages.
Fox Corporation offers a comprehensive range of health benefits to its employees, which are designed to support their well-being from the first day of employment. The health benefits package includes medical, dental, and vision coverage, which are available without any waiting period for many positions. In addition to these core health benefits, Fox also provides flexible spending accounts (FSAs), life insurance, business travel insurance, and long-term disability insurance. Fox places a strong emphasis on whole-person health, including not just physical but also mental health support through their Employee Assistance Program (EAP). This reflects broader trends in employee health benefits, where companies are increasingly focusing on holistic wellness programs that address both physical and mental well-being, especially given the rising costs of healthcare and pharmaceuticals.
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For more information you can reach the plan administrator for Fox at , ; or by calling them at .

https://turbotax.intuit.com/tax-tips/retirement/net-unrealized-appreciation-nua-tax-treatment-amp-strategies/c71vBJZ2B https://bogartwealth.com/nua-strategy/ https://www.kiplinger.com/taxes/tax-planning/604591/net-unrealized-appreciation-a-hidden-tax-strategy https://darrowwealthmanagement.com/blog/net-unrealized-appreciation-rules/ https://www.foxrothschild.com/publications/interest-rate-hikes-present-challenge-for-fully-funded-pension-plans https://valueyourpension.com/pbgc-vs-irc-vs-gatt-interest-rates-and-present-value-calculation-methods/ https://www.milliman.com/en/insight/2023-lump-sums-defined-benefit-plans-much-lower-as-interest-rates-rise https://www.irs.gov/retirement-plans/pension-plan-funding-segment-rates https://www.foxcorporation.com/news/corp-press-releases/2022/fox-corporation-forms-special-committee-to-begin-exploring-a-potential-combination-with-news-corporation/ https://www.thewrap.com/fox-merger-acquisition-opportunities/ https://en.wikipedia.org/wiki/Fox_Corporation https://www.foxcareers.com/Content/docs/2023-FOX-Benefits-Summary.pdf https://foxcareers.com/LifeAtFox/BenefitsandPerks https://www.marshmma.com/us/insights/details/employee-health-and-benefits-trends.html https://www.milliman.com/en/ https://law-store.wolterskluwer.com/s/ https://am.gs.com/en-int/advisors

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