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

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Healthcare Provider Update: Healthcare Provider for Avantor Avantor, Inc. is a leading global provider of mission-critical products and services primarily serving the biopharma and healthcare sectors, among others. While Avantor operates extensively within these fields, specific details regarding partnership with a healthcare provider are typically not publicly disclosed in standard documents. However, Avantor's contributions to healthcare are primarily through the supply of high-purity materials, advanced technologies, and crucial solutions for bioprocessing and scientific research, indicating that they do engage closely with healthcare providers as part of their operations. Expected Healthcare Cost Increases in 2026 As we look toward 2026, healthcare costs are anticipated to rise dramatically, with projections indicating an average increase of 75% in out-of-pocket premiums for Affordable Care Act (ACA) marketplace enrollees. This surge is due to a convergence of factors, including the expiration of enhanced federal premium subsidies and significant rate hikes from major insurers, with some states seeing requested increases over 60%. The Kaiser Family Foundation has warned that more than 22 million individuals could be affected, facing steep premiums amidst a backdrop of escalating medical costs, requiring consumers to prepare strategically now to mitigate the financial impact in the coming year. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Avantor-sponsored plan. You may also gain more investment options than what may have been available in your Avantor-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.' brown rocky mountain beside blue sea during daytime

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 Avantor-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.

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

  • Internal management fees might be higher than in a Avantor-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 Avantor-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 Avantor.

 

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 401(k) plan offered by Avantor?

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

How does Avantor match employee contributions to the 401(k) plan?

Avantor offers a company match on employee contributions to the 401(k) plan, typically matching a percentage of the employee's contribution up to a certain limit.

When can employees at Avantor enroll in the 401(k) plan?

Employees at Avantor can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.

What investment options are available in Avantor's 401(k) plan?

Avantor's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for Avantor's 401(k) contributions?

Yes, Avantor has a vesting schedule for company contributions to the 401(k) plan, meaning employees must work for a certain period before they fully own the employer contributions.

Can employees take loans against their 401(k) at Avantor?

Yes, Avantor allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

What happens to my 401(k) if I leave Avantor?

If you leave Avantor, you can choose to roll over your 401(k) balance into another retirement account, leave it in the Avantor plan (if eligible), or cash it out, subject to taxes and penalties.

How can employees at Avantor access their 401(k) account information?

Employees can access their 401(k) account information through the online portal provided by Avantor's plan administrator.

Does Avantor provide financial education regarding the 401(k) plan?

Yes, Avantor offers resources and financial education sessions to help employees understand their 401(k) options and make informed investment decisions.

What is the minimum contribution percentage for the 401(k) plan at Avantor?

The minimum contribution percentage for the 401(k) plan at Avantor is typically set at 1%, but employees are encouraged to contribute more to maximize their retirement savings.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Avantor announced a significant restructuring plan that involves layoffs affecting 5% of its workforce. The company is also changing its pension plan, moving from a defined benefit to a defined contribution model. Additionally, they are modifying their 401(k) matching contributions to align with industry standards.
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For more information you can reach the plan administrator for Avantor at 3477 Corporate Pkwy Center Valley, PA 18034; or by calling them at +1 610-573-2600.

*Please see disclaimer for more information

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