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Healthcare Provider Update: Healthcare Provider for KeyCorp: KeyCorp partners with Anthem Blue Cross Blue Shield as their primary healthcare provider. This relationship offers KeyCorp employees a broad range of health insurance options and services to ensure their healthcare needs are met efficiently. Healthcare Cost Increases in 2026: As we approach 2026, significant increases in healthcare costs are anticipated. With the expiration of enhanced federal premium subsidies under the Affordable Care Act, many enrollees could face out-of-pocket premium hikes exceeding 75%. This situation is exacerbated by rising medical costs and aggressive rate hikes from major insurers, which in some states might surpass 60%. The combination of these factors suggests a challenging landscape for consumers, potentially prompting healthier individuals to exit the market, thus raising costs for those who remain. As the healthcare industry grapples with these changes, proactive planning for 2026 will be essential for individuals and employers alike. Click here to learn more
Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a KeyCorp-sponsored plan. You may also gain more investment options than what may have been available in your KeyCorp-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 KeyCorp-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 KeyCorp should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a KeyCorp-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 KeyCorp-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 KeyCorp.
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 type of retirement plan does KeyCorp offer to its employees?
KeyCorp offers a 401(k) Savings Plan to help employees save for retirement.
How can KeyCorp employees enroll in the 401(k) Savings Plan?
KeyCorp employees can enroll in the 401(k) Savings Plan through the company’s HR portal or by contacting the benefits department.
Does KeyCorp match employee contributions to the 401(k) Savings Plan?
Yes, KeyCorp provides a matching contribution to employee contributions made to the 401(k) Savings Plan, subject to certain limits.
What is the maximum contribution limit for KeyCorp's 401(k) Savings Plan?
The maximum contribution limit for KeyCorp's 401(k) Savings Plan is determined by IRS regulations and may change annually.
Can KeyCorp employees take loans against their 401(k) Savings Plan balance?
Yes, KeyCorp allows employees to take loans against their 401(k) Savings Plan balance under certain conditions.
What investment options are available in KeyCorp's 401(k) Savings Plan?
KeyCorp's 401(k) Savings Plan offers a variety of investment options, including mutual funds and other investment vehicles.
How often can KeyCorp employees change their 401(k) contribution amounts?
KeyCorp employees can change their 401(k) contribution amounts at any time, subject to payroll processing schedules.
Is there a vesting schedule for KeyCorp's 401(k) Savings Plan?
Yes, KeyCorp has a vesting schedule for its matching contributions, which determines when employees fully own those contributions.
At what age can KeyCorp employees begin withdrawing from their 401(k) Savings Plan without penalties?
KeyCorp employees can begin withdrawing from their 401(k) Savings Plan without penalties at age 59½.
What happens to KeyCorp's 401(k) Savings Plan if an employee leaves the company?
If an employee leaves KeyCorp, they can roll over their 401(k) Savings Plan balance to another retirement account or leave it in the plan, depending on the balance.
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