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Healthcare Provider Update: Healthcare Provider for Coterra Energy Coterra Energy employees and retirees utilize the healthcare services offered through a variety of providers, primarily those associated with the Affordable Care Act (ACA) marketplace plans. These can include major insurers like UnitedHealthcare, Anthem (Elevance Health), and others depending on the specific plan selections available to them. It is advisable for employees to review their individual options based on their needs and potential costs. Potential Healthcare Cost Increases in 2026 In 2026, Coterra Energy employees may face substantial increases in healthcare costs, driven by impending changes in the Affordable Care Act (ACA). With state estimates pointing to premium hikes exceeding 60% in some regions, and a potential loss of federal premium subsidies, many employees could experience a drastic rise in out-of-pocket expenses-averaging an alarming 75%. This scenario is compounded by escalating medical costs across the board, placing additional financial strain on Coterra employees and retirees as they navigate their healthcare options. It is critical for individuals to proactively plan for these changes to avoid detrimental impacts on their 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 Coterra Energy-sponsored plan. You may also gain more investment options than what may have been available in your Coterra Energy-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.
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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 Coterra Energy-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 Coterra Energy should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Coterra Energy-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 Coterra Energy-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 Coterra Energy.
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 primary purpose of Coterra Energy's 401(k) Savings Plan?
The primary purpose of Coterra Energy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their salary.
How can employees of Coterra Energy enroll in the 401(k) Savings Plan?
Employees of Coterra Energy can enroll in the 401(k) Savings Plan by completing the online enrollment process through the company’s benefits portal or by contacting the HR department for assistance.
What types of contributions can employees make to Coterra Energy's 401(k) Savings Plan?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and possibly catch-up contributions if they are age 50 or older to Coterra Energy's 401(k) Savings Plan.
Does Coterra Energy offer a company match for 401(k) contributions?
Yes, Coterra Energy offers a company match for employee contributions to the 401(k) Savings Plan, which enhances the overall retirement savings for employees.
What is the vesting schedule for Coterra Energy's company match in the 401(k) Savings Plan?
The vesting schedule for Coterra Energy's company match typically follows a graded vesting schedule, where employees become fully vested after a certain number of years of service.
Can employees of Coterra Energy change their contribution amounts to the 401(k) Savings Plan?
Yes, employees can change their contribution amounts to Coterra Energy's 401(k) Savings Plan at any time, subject to plan rules.
What investment options are available within Coterra Energy's 401(k) Savings Plan?
Coterra Energy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
Is there a loan option available through Coterra Energy's 401(k) Savings Plan?
Yes, Coterra Energy allows employees to take loans against their 401(k) Savings Plan balance, subject to specific terms and conditions outlined in the plan.
How can employees access their account information for Coterra Energy's 401(k) Savings Plan?
Employees can access their account information for Coterra Energy's 401(k) Savings Plan through the plan's online portal or by contacting the plan administrator.
What happens to the 401(k) Savings Plan if an employee leaves Coterra Energy?
If an employee leaves Coterra Energy, they have several options regarding their 401(k) Savings Plan balance, including rolling it over to another retirement account, cashing it out, or leaving it in the plan if permitted.
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