Is a Rollover into an IRA the Right Move for You as a Colgate-Palmolive Employee?

Healthcare Provider Update: Colgate-Palmolive Healthcare Provider Overview Colgate-Palmolive offers its employees access to healthcare services through various providers, primarily utilizing national insurance carriers such as UnitedHealthcare and Aetna. These partnerships ensure comprehensive coverage for employees across their diverse health needs, including medical, dental, and vision care. Potential Healthcare Cost Increases for Colgate-Palmolive in 2026 In 2026, Colgate-Palmolive employees may face significant healthcare cost increases due to sharp rises in Affordable Care Act (ACA) premiums. As a result of factors such as the anticipated expiration of enhanced federal premium subsidies and accelerated medical inflation, many marketplace enrollees could see their out-of-pocket premiums rise by over 75%. These developments create a financial pressure point for employees, particularly for those considering early retirement, as they will need to account for escalating healthcare expenses in their financial planning. With states like New York expecting premium hikes of up to 66%, careful evaluation of healthcare options will be essential for maintaining financial stability. Click here to learn more

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

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

 

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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