Healthcare Provider Update: Healthcare Provider for Live Nation Entertainment: Live Nation Entertainment's healthcare benefits are primarily managed through major insurance carriers, including UnitedHealthcare and Anthem. These providers offer the health plans available to Live Nation employees, reflecting the company's focus on ensuring broad access to quality healthcare services. Potential Healthcare Cost Increases for Live Nation Entertainment in 2026: As we approach 2026, healthcare costs for employees at Live Nation Entertainment are projected to rise significantly due to several compounding factors. Primarily, the expiration of enhanced federal subsidies under the Affordable Care Act (ACA) may lead to average premium increases of over 75% for many enrollees. Additionally, anticipated requests for double-digit rate hikes by major insurers, driven by escalating medical costs and a tight labor market, are expected to result in substantial out-of-pocket increases for employees. This financial burden will necessitate strategic planning and adjustments in healthcare coverage choices to mitigate escalating costs in the coming year. Click here to learn more
One silver lining in the current bear market is that this could be a good time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject to federal income tax in the year of conversion, which might be a substantial tax bill. However, if assets in your traditional IRA have lost value, you will pay taxes on a lower asset base when you convert. If all conditions are met, the Roth account will incur no further income tax liability for you or your designated beneficiaries, no matter how much growth the account experiences.
Tax Trade-Off
The logic behind deferring taxes on Live Nation Entertainment retirement savings is that you may be in a lower tax bracket when you retire from Live Nation Entertainment, so a current tax deduction might be more appealing than tax-free income in retirement. However, lower rates set by the Tax Cuts and Jobs Act (set to expire after 2025) may have changed that calculation for you. A cost-benefit analysis could help determine whether it would be beneficial to pay taxes on some of your IRA assets now rather than later. One strategy is to 'fill your tax bracket,' meaning you would convert an asset value that would keep you in the same tax bracket. This requires projecting your income for 2022.
Lower Values, More Shares
As long as your traditional and Roth IRAs are with the same provider, you can typically transfer shares from one account to the other. Thus, when share prices are lower, you could theoretically convert more shares for each taxable dollar and would have more shares in your Roth account to pursue tax-free growth. Of course, there is also a risk that the converted assets will go down in value. You may have the option to take taxes directly out of your converted assets, but this is generally not wise.
Two Time Tests
Roth accounts are subject to two different five-year holding requirements: one related to withdrawals of earnings and the other related to conversions. For a tax-free and penalty-free withdrawal of earnings, including earnings on converted amounts, a Roth account must meet a five-year holding period beginning January 1 of the year your first Roth account was opened, and the withdrawal must take place after age 59½ or meet an IRS exception. If you have had a Roth IRA for some time, this may not be an issue, but it could come into play if you open your first Roth IRA for the conversion.
Assets converted to a Roth IRA can be withdrawn free of ordinary income tax at any time, because you paid taxes at the time of the conversion. However, a 10% penalty may apply if you withdraw the assets before the end of a different five-year period, which begins January 1 of the year of each conversion, unless you are age 59½ or another exception applies.
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More Favorable RMD Rules
Unlike a traditional IRA, Roth IRAs are not subject to required minimum distribution (RMD) rules during the lifetime of the original owner. Spouse beneficiaries who treat a Roth IRA as their own are also not subject to RMDs during their lifetimes. Other beneficiaries inheriting a Roth IRA are subject to the RMD rules. In any case, Roth distributions would be tax-free. The longer your investments can pursue growth, the more advantageous it may be for you and your beneficiaries to have tax-free income.
All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful for Live Nation Entertainment employees.
What type of retirement plan does Live Nation Entertainment offer to its employees?
Live Nation Entertainment offers a 401(k) retirement savings plan to its employees.
Is participation in the 401(k) plan at Live Nation Entertainment mandatory?
No, participation in the 401(k) plan at Live Nation Entertainment is voluntary; employees can choose to enroll.
What is the employer match percentage for the 401(k) plan at Live Nation Entertainment?
Live Nation Entertainment offers a competitive employer match for the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.
How can employees at Live Nation Entertainment enroll in the 401(k) plan?
Employees at Live Nation Entertainment can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What investment options are available in the Live Nation Entertainment 401(k) plan?
The Live Nation Entertainment 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
When can employees at Live Nation Entertainment start contributing to their 401(k) plan?
Employees at Live Nation Entertainment can start contributing to their 401(k) plan after completing their eligibility period, which is typically outlined in the plan documents.
Does Live Nation Entertainment allow employees to take loans against their 401(k) savings?
Yes, Live Nation Entertainment allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.
What is the vesting schedule for employer contributions in the Live Nation Entertainment 401(k) plan?
The vesting schedule for employer contributions in the Live Nation Entertainment 401(k) plan is typically outlined in the plan documents and may vary based on years of service.
Can employees at Live Nation Entertainment change their contribution percentage at any time?
Yes, employees at Live Nation Entertainment can change their contribution percentage at any time, subject to the plan’s guidelines.
What happens to an employee’s 401(k) account if they leave Live Nation Entertainment?
If an employee leaves Live Nation Entertainment, they have several options for their 401(k) account, including rolling it over to another retirement account or leaving it with Live Nation Entertainment, depending on the plan rules.