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 Franklin Resources Employee?

Healthcare Provider Update: Healthcare Provider for Franklin Resources Franklin Resources, Inc., commonly known as Franklin Templeton, typically collaborates with various healthcare providers depending on the specific needs of its employees and plans. While they do not publicly list a single healthcare provider, companies like Aetna, Cigna, and UnitedHealthcare often serve large corporations like Franklin Resources for group health insurance and benefits. Predicted Healthcare Cost Increases in 2026 for Franklin Resources As 2026 approaches, Franklin Resources faces significant challenges regarding healthcare costs. A perfect storm of factors is contributing to anticipated sharp increases in premiums, with some states expecting hikes over 60%. The looming expiration of enhanced federal premium subsidies will leave many policyholders exposing them to potential out-of-pocket cost increases of more than 75%. Meanwhile, coupled with a general uptick in medical costs-primarily due to inflation and rising demand for care-the financial burden on employees could become substantial moving forward. Organizations like Franklin must prepare both strategically and financially for this impending shift in the healthcare landscape. Click here to learn more

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

Internal management fees might be higher than in a Franklin Resources-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 Franklin Resources-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 Franklin Resources.

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 retirement savings options does Franklin Resources offer to its employees?

Franklin Resources offers a 401(k) plan as part of its employee benefits package, allowing employees to save for retirement.

How does Franklin Resources match employee contributions to the 401(k) plan?

Franklin Resources provides a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

Can employees of Franklin Resources choose how to invest their 401(k) contributions?

Yes, employees at Franklin Resources can select from a variety of investment options within the 401(k) plan to tailor their retirement savings according to their risk tolerance and financial goals.

What is the eligibility requirement for Franklin Resources employees to participate in the 401(k) plan?

Employees of Franklin Resources are generally eligible to participate in the 401(k) plan after completing a specified period of service, typically within their first year of employment.

Does Franklin Resources offer any educational resources for employees to learn about their 401(k) options?

Yes, Franklin Resources provides educational resources, including workshops and online tools, to help employees understand their 401(k) options and make informed investment decisions.

How can employees of Franklin Resources access their 401(k) account information?

Employees can access their 401(k) account information through the Franklin Resources employee portal or by contacting the plan administrator directly.

What types of contributions can employees make to the 401(k) plan at Franklin Resources?

Employees at Franklin Resources can make pre-tax contributions, Roth contributions, and possibly after-tax contributions, depending on the plan's provisions.

Is there a vesting schedule for the matching contributions made by Franklin Resources?

Yes, Franklin Resources typically has a vesting schedule for matching contributions, meaning employees must work for a certain period before they fully own those contributions.

Can employees take loans against their 401(k) balance at Franklin Resources?

Yes, Franklin Resources allows employees to take loans against their 401(k) balance, subject to the plan's rules and limits.

What happens to an employee's 401(k) plan if they leave Franklin Resources?

If an employee leaves Franklin Resources, they can choose to roll over their 401(k) balance into an IRA or a new employer's retirement plan, or they can cash out, 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.

In 2024, Franklin Resources announced a major restructuring plan that includes significant layoffs across various departments. The company is also revising its pension plan, which will impact future retirees. Furthermore, changes to the 401(k) matching contributions are expected.