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Is a Rollover into an IRA the Right Move for You as a Assurant Employee?

Healthcare Provider Update: Healthcare Provider for Assurant Assurant is a global provider of risk management solutions, which includes health insurance products. The company's health offerings primarily encompass supplemental health insurance, short-term medical plans, and other healthcare-related services that cater to individuals and businesses. Potential Healthcare Cost Increases in 2026 In 2026, health insurance premiums for Affordable Care Act (ACA) marketplace plans are anticipated to rise significantly, driven by a combination of economic factors and policy changes. With projected premium hikes exceeding 60% in some states, the expiration of enhanced federal subsidies could leave many individuals facing out-of-pocket premium increases of over 75%. This surge may force millions of consumers to reconsider their coverage options as rising healthcare costs, compounded by inflation and insurer rate hikes, threaten the affordability of essential health services. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Assurant-sponsored plan. You may also gain more investment options than what may have been available in your Assurant-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 Assurant-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 Assurant should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Assurant-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 Assurant-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 Assurant.

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 is the Assurant 401(k) Savings Plan?

The Assurant 401(k) Savings Plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or after-tax basis.

How can I enroll in the Assurant 401(k) Savings Plan?

Employees can enroll in the Assurant 401(k) Savings Plan by completing the online enrollment process through the Assurant benefits portal or by contacting the HR department for assistance.

Does Assurant offer a company match for the 401(k) Savings Plan?

Yes, Assurant offers a company match for the 401(k) Savings Plan, which helps employees maximize their retirement savings.

What is the maximum contribution limit for the Assurant 401(k) Savings Plan?

The maximum contribution limit for the Assurant 401(k) Savings Plan is determined by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

Can I change my contribution amount to the Assurant 401(k) Savings Plan?

Yes, employees can change their contribution amount to the Assurant 401(k) Savings Plan at any time through the benefits portal.

What investment options are available in the Assurant 401(k) Savings Plan?

The Assurant 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

When can I start withdrawing funds from my Assurant 401(k) Savings Plan?

Employees can typically start withdrawing funds from their Assurant 401(k) Savings Plan without penalty at age 59½, but specific rules may apply, so it's best to consult the plan documents.

What happens to my Assurant 401(k) Savings Plan if I leave the company?

If you leave Assurant, you have several options for your 401(k) Savings Plan, including rolling it over to another retirement account, cashing it out, or leaving it with Assurant until you reach retirement age.

Is there a loan option available in the Assurant 401(k) Savings Plan?

Yes, the Assurant 401(k) Savings Plan may allow employees to take loans against their vested balance, subject to certain terms and conditions.

How often can I change my investment allocations in the Assurant 401(k) Savings Plan?

Employees can change their investment allocations in the Assurant 401(k) Savings Plan as often as they like, but it's advisable to review your choices periodically.

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

Assurant announced a significant restructuring plan, including layoffs impacting around 10% of their workforce. The restructuring aims to streamline operations and reduce costs amidst a challenging economic environment.