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 Coca-Cola Employee?

Healthcare Provider Update: Coca-Cola's primary healthcare provider is Anthem Blue Cross Blue Shield, offering coverage options for its employees that includes a variety of plan choices to address their diverse healthcare needs. As we look ahead to 2026, significant increases in healthcare costs are anticipated, particularly in the wake of potential changes to the Affordable Care Act. A perfect storm of factors is contributing to this forecast; namely, the expiration of enhanced federal premium subsidies may lead many consumers to face out-of-pocket premium increases exceeding 75%. Coupled with anticipated medical cost inflation, which is projected to rise around 8% annually, employees of Coca-Cola and others could see their healthcare expenses surge dramatically, prompting companies to adapt their health benefits strategies. Click here to learn more

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

Internal management fees might be higher than in a Coca-Cola-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 Coca-Cola-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 Coca-Cola.

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 Coca-Cola 401(k) plan?

The Coca-Cola 401(k) plan is a retirement savings plan that allows eligible employees to save a portion of their paycheck on a pre-tax basis, helping them prepare for retirement.

How can I enroll in the Coca-Cola 401(k) plan?

You can enroll in the Coca-Cola 401(k) plan by accessing the employee benefits portal or contacting the HR department for assistance with the enrollment process.

What is the employer match for the Coca-Cola 401(k) plan?

Coca-Cola offers a competitive employer match for contributions made to the 401(k) plan, which can significantly enhance your retirement savings.

When can I start contributing to the Coca-Cola 401(k) plan?

Eligible employees can start contributing to the Coca-Cola 401(k) plan after completing a specified waiting period, typically upon hire or after a designated time frame.

What types of investments are available in the Coca-Cola 401(k) plan?

The Coca-Cola 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their retirement savings.

How much can I contribute to the Coca-Cola 401(k) plan each year?

Employees can contribute up to the IRS annual limit for 401(k) plans, which is adjusted periodically. For 2023, the limit is $22,500, with an additional catch-up contribution for those aged 50 and over.

Does Coca-Cola offer a Roth 401(k) option?

Yes, Coca-Cola offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings, which can grow tax-free.

Can I take a loan from my Coca-Cola 401(k) plan?

Yes, employees may have the option to take a loan from their Coca-Cola 401(k) plan, subject to specific terms and conditions outlined in the plan documents.

What happens to my Coca-Cola 401(k) plan if I leave the company?

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

How often can I change my contributions to the Coca-Cola 401(k) plan?

Employees can typically change their contribution amounts to the Coca-Cola 401(k) plan at any time, subject to the plan's specific guidelines and deadlines.

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

Coca-Cola offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan calculates retirement benefits based on years of service and final average pay. The 401(k) plan includes company matching contributions, with various investment options available to employees, such as target-date funds and mutual funds. Coca-Cola provides financial education and planning resources to help employees manage their retirement savings.

Coca-Cola has announced a major global reorganization, which includes offering voluntary separation packages to 4,000 employees and implementing layoffs. The company continues to offer a comprehensive benefits package, including a 401(k) plan with company match and various health and wellness programs. Staying informed about these benefits is vital in the current political climate.

Coca-Cola offers RSUs as part of its equity compensation, vesting over time and converting into shares. They also provide stock options, enabling employees to buy shares at a set price.

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For more information you can reach the plan administrator for Coca-Cola at One Coca-Cola Plaza Atlanta, GA 30313; or by calling them at (404) 676-2121.