New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating Inflation: Essential Insights for A.O. Smith Employees to Safeguard Their Retirement Plans

Healthcare Provider Update: Healthcare Provider for A.O. Smith A.O. Smith primarily offers healthcare benefits to its employees through a selection of insurance plans, which include both individual and family coverage options. Specific details on the providers or plans may vary based on location and employee level, but many employees utilize major providers like Blue Cross Blue Shield or Aetna for their healthcare needs. Potential Healthcare Cost Increases in 2026 In 2026, A.O. Smith employees may face significant healthcare cost increases, primarily driven by anticipated hikes in Affordable Care Act (ACA) premiums. Reports indicate that some states are expecting increases of over 60%, affecting the insurance landscape as federal subsidizations expire. As many as 22 million marketplace enrollees-constituting about 92% of policyholders-could see their out-of-pocket premiums rise by more than 75%. This drastic increase in healthcare costs is compounded by rising medical expenses and pressure from major insurers, resulting in a challenging financial environment for employees planning their healthcare budgets. Click here to learn more

As a A.O. Smith employee earning a good wage, remember when everyday products were much cheaper than they are now? That's a real-life example of inflation, an unavoidable phenomenon that erodes the value of money by pushing prices up over time. If capital isn't being put to work and making a return during inflationary periods, the purchasing power of investor capital is declining.

'If capital isn't being put to work and making a return during inflationary periods, the purchasing power of investor capital is declining.'

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As a A.O. Smith employee interested in investing, it is important to consider how investors have a wide range of tools at their disposal to protect their portfolios from inflation. Some prefer inflation-protected bonds, while others swear by commodities such as gold as effective inflation hedges. Investing in stocks has historically been one of the best ways to offset, or even outpace, inflation's degenerative effects on one's savings. For A.O. Smith employees, it is important to account for this information when planning your finances as to create a portfolio that minimizes volatility and accounts for inflation.

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We still have a tremendous amount of interest from advisors looking into commodity funds, ETFs and other inflation protection instruments to protect against potential inflation.

What type of retirement savings plan does A.O. Smith offer to its employees?

A.O. Smith offers a 401(k) retirement savings plan to its employees.

How can employees of A.O. Smith enroll in the 401(k) plan?

Employees of A.O. Smith can enroll in the 401(k) plan through the company’s HR portal during the enrollment period or when they first become eligible.

Does A.O. Smith match contributions to the 401(k) plan?

Yes, A.O. Smith provides a matching contribution to the 401(k) plan, helping employees maximize their retirement savings.

What is the maximum contribution percentage that employees can contribute to the A.O. Smith 401(k) plan?

Employees can contribute up to the IRS annual limit, which is adjusted each year. A.O. Smith encourages employees to check the latest limits.

Are there any fees associated with the A.O. Smith 401(k) plan?

Yes, like most 401(k) plans, the A.O. Smith 401(k) plan may have administrative fees, investment fees, and other related costs. Employees should review the plan documents for specific details.

Can employees take loans against their 401(k) savings at A.O. Smith?

Yes, A.O. Smith allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in the A.O. Smith 401(k) plan?

The A.O. Smith 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.

When can employees of A.O. Smith start withdrawing from their 401(k) accounts?

Employees can typically start withdrawing from their A.O. Smith 401(k) accounts at age 59½, although there are provisions for hardship withdrawals and loans.

What happens to the 401(k) plan if an employee leaves A.O. Smith?

If an employee leaves A.O. Smith, they can either roll over their 401(k) balance to another qualified plan, cash out, or leave the funds in the A.O. Smith plan if eligible.

Is there a vesting schedule for the A.O. Smith 401(k) plan?

Yes, A.O. Smith has a vesting schedule for employer contributions, which means employees must work for a certain period to fully own those contributions.

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

In July 2024, A.O. Smith announced a restructuring plan that includes workforce reductions affecting approximately 5% of its employees globally. This decision follows a period of declining sales and a strategic shift to focus on high-growth markets.

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For more information you can reach the plan administrator for A.O. Smith at 11270 West Park Place, Suite 170 Milwaukee, WI 53224; or by calling them at (414) 359-4000.