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

Is a Rollover into an IRA the Right Move for You as a American International Group Employee?

Healthcare Provider Update: Healthcare Provider for American International Group American International Group (AIG) does not operate its own health insurance plans but partners with various insurance providers to offer services. Key partners include major healthcare insurers such as UnitedHealthcare, Anthem, and Cigna, among others. These collaborations allow AIG to provide diverse health insurance options to its clients in a variety of markets. Potential Healthcare Cost Increases in 2026 As AIG navigates the changing healthcare landscape, a significant rise in health insurance premiums is anticipated for 2026, particularly within the Affordable Care Act (ACA) marketplace. Reports indicate that some states may experience premium hikes exceeding 60%, driven by factors such as increasing medical costs, the expiration of federal premium subsidies, and aggressive rate increases by major insurers. Without congressional action to extend enhanced subsidies, an estimated 22 million enrollees could face out-of-pocket premium increases of over 75%, potentially pricing many middle-income Americans out of affordable coverage. This convergence of market forces poses substantial challenges for both insurers and consumers alike, reshaping the healthcare landscape in the coming years. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a American International Group-sponsored plan. You may also gain more investment options than what may have been available in your American International Group-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a American International Group-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that American International Group should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a American International Group-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former American International Group-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from American International Group.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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What type of retirement savings plan does American International Group offer to its employees?

American International Group offers a 401(k) retirement savings plan to its employees.

How can employees of American International Group enroll in the 401(k) plan?

Employees of American International Group can enroll in the 401(k) plan through the companys benefits portal during the enrollment period or upon starting employment.

What is the employer match policy for the 401(k) plan at American International Group?

American International Group provides a matching contribution to the 401(k) plan, which typically matches a percentage of employee contributions up to a certain limit.

Are there any eligibility requirements for American International Groups 401(k) plan?

Yes, employees must meet certain eligibility requirements, such as a minimum length of service, to participate in American International Group's 401(k) plan.

What investment options are available in the American International Group 401(k) plan?

The American International Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Can employees of American International Group take loans against their 401(k) savings?

Yes, American International Group allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What is the vesting schedule for employer contributions in the American International Group 401(k) plan?

The vesting schedule for employer contributions in the American International Group 401(k) plan typically follows a graded vesting schedule, which means employees earn ownership of the contributions over time.

How often can employees change their contribution amounts to the American International Group 401(k) plan?

Employees of American International Group can change their contribution amounts to the 401(k) plan at any time, subject to the plan's rules.

What happens to the 401(k) savings if an employee leaves American International Group?

If an employee leaves American International Group, they have several options for their 401(k) savings, including rolling it over to another qualified plan or withdrawing the funds.

Does American International Group provide resources for employees to learn about retirement planning?

Yes, American International Group offers educational resources and tools to help employees understand their 401(k) plan and make informed retirement planning decisions.

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

American International Group (AIG) is a leading global insurance organization. The company provides a wide range of property casualty insurance, life insurance, retirement products, and other financial services.

AIG offers RSUs and stock options to eligible employees. The stock options vest over time, providing long-term incentives.

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For more information you can reach the plan administrator for American International Group at 175 Water Street New York, NY 10038; or by calling them at (212) 770-7000.