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

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

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

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 Comcast 401(k) Savings Plan?

The Comcast 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 (Roth) basis.

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

Employees can enroll in the Comcast 401(k) Savings Plan through the company’s benefits portal during the open enrollment period or within 30 days of their hire date.

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

For 2023, the maximum employee contribution limit to the Comcast 401(k) Savings Plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and over.

Does Comcast offer any matching contributions to the 401(k) Savings Plan?

Yes, Comcast offers a matching contribution to the 401(k) Savings Plan, matching 100% of the first 4% of employee contributions.

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

Employees can begin withdrawing from their Comcast 401(k) Savings Plan at age 59½, or earlier in cases of financial hardship or if they leave the company.

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

The Comcast 401(k) Savings Plan offers a variety of investment options, including target-date funds, index funds, and actively managed funds, allowing employees to choose based on their risk tolerance.

Can I take a loan from my Comcast 401(k) Savings Plan?

Yes, employees can take a loan from their Comcast 401(k) Savings Plan, subject to certain limits and repayment terms as outlined in the plan documents.

How can I change my contribution amount to the Comcast 401(k) Savings Plan?

Employees can change their contribution amount to the Comcast 401(k) Savings Plan through the benefits portal at any time, subject to plan rules.

Is there a vesting schedule for Comcast's matching contributions?

Yes, Comcast has a vesting schedule for matching contributions, which typically requires employees to work for a certain number of years before they fully own the matched funds.

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

If you leave Comcast, you can choose to roll over your 401(k) savings into another retirement account, leave the funds in the plan, or withdraw the balance, subject to taxes and penalties.

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

Comcast provides a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and Comcast matches 100% of the first 4.5% of eligible compensation. The plan includes various investment options, such as target-date funds, mutual funds, and a self-directed brokerage account. Comcast also offers an Employee Stock Purchase Plan (ESPP) with a discount on company stock. Financial planning resources and tools are available to help employees manage their retirement savings.

Comcast is planning further layoffs in 2024, with expected severance charges as part of ongoing cost-cutting measures. The company has already implemented layoffs across various divisions, including its Sky unit, and is focusing on outsourcing to manage costs. Comcast offers comprehensive benefits, including a 401(k) plan and health benefits. Understanding these benefits is essential given the current political and economic environment.

Comcast grants RSUs that vest over a period, providing shares upon vesting. Stock options are also part of their compensation plan, allowing employees to buy shares at a set price.