Is a Rollover into an IRA the Right Move for You as a Carter's Employee?

Healthcare Provider Update: Healthcare Provider for Carter's Carter's, a well-known children's apparel company, primarily utilizes Anthem Blue Cross Blue Shield as its healthcare provider. This partnership allows employees to access a range of health benefits including medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 As 2026 approaches, employees at Carter's should brace for significant rises in healthcare costs. A reported trend indicates that many large employers, including Carter's, are likely to increase deductibles and out-of-pocket maximums in response to soaring healthcare expenses, heavily influenced by anticipated double-digit premium hikes in the ACA marketplace. Without the renewal of enhanced federal subsidies, workers could see their premiums spike by over 75%, compounding the financial burden already tied to rising medical costs driven by inflation and escalating prescription drug prices. Preparing for these adjustments now by reviewing benefits and optimizing healthcare strategies will be crucial for mitigating these potential increases. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Carter's-sponsored plan. You may also gain more investment options than what may have been available in your Carter's-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.'

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 Carter's-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 Carter's should make before rolling over their money into an IRA, these include:

• Internal management fees might be higher than in a Carter's-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 Carter's-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 Carter's.

 

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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