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

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

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

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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Articles you may find interesting:

What type of retirement plan does KKR offer to its employees?

KKR offers a 401(k) retirement savings plan to its employees.

How can KKR employees enroll in the 401(k) plan?

KKR employees can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal.

Does KKR match employee contributions to the 401(k) plan?

Yes, KKR provides a matching contribution to employees' 401(k) plans, subject to certain limits.

What is the maximum contribution limit for KKR employees in the 401(k) plan?

The maximum contribution limit for KKR employees in the 401(k) plan is determined by the IRS and may change annually.

Can KKR employees change their contribution percentage at any time?

Yes, KKR employees can change their contribution percentage at any time, subject to the plan’s guidelines.

What investment options are available in KKR's 401(k) plan?

KKR’s 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

Is there a vesting schedule for KKR's 401(k) matching contributions?

Yes, KKR has a vesting schedule for its matching contributions, which determines when employees fully own those funds.

Can KKR employees take loans against their 401(k) savings?

Yes, KKR employees may have the option to take loans against their 401(k) savings, depending on the plan’s rules.

What happens to KKR employees' 401(k) accounts if they leave the company?

If KKR employees leave the company, they can roll over their 401(k) accounts to another retirement account or leave them with KKR, subject to plan provisions.

Does KKR provide financial education resources for employees regarding their 401(k) plans?

Yes, KKR offers financial education resources to help employees understand and manage their 401(k) plans effectively.

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

Name of Pension Plan: KKR Pension Plan Eligibility: Employees are generally eligible if they have completed 5 years of service and are at least 55 years old. Pension Formula: The formula is based on years of service and final average salary. Name of 401(k) Plan: KKR 401(k) Savings Plan Eligibility: Employees who have completed 1 year of service are eligible.

Restructuring and Layoffs: KKR announced a restructuring plan aimed at streamlining its operations and focusing on core investment areas. This includes layoffs primarily in non-core divisions and a consolidation of certain administrative functions. This move is part of a broader strategy to adapt to current market conditions and optimize operational efficiency. It is crucial for stakeholders to stay informed about these changes given the volatile economic environment, which could impact investment strategies and employee benefits.

Kohlberg Kravis Roberts & Co. (KKR) provided details on their employee stock options and RSUs in their annual report. Stock Options (SO): KKR grants stock options primarily to senior executives and key employees as part of their long-term incentive program. RSUs: KKR offers RSUs to executives and high-potential employees, typically vesting over a period of 3-5 years.

HMO (Health Maintenance Organization): A type of health insurance plan that requires members to use a network of doctors and hospitals. PPO (Preferred Provider Organization): A health insurance plan that offers more flexibility in choosing healthcare providers. HDHP (High Deductible Health Plan): A plan with a higher deductible but lower premiums, often paired with a Health Savings Account (HSA). HSA (Health Savings Account): A tax-advantaged savings account for people with high-deductible health plans to save for medical expenses. EAP (Employee Assistance Program): A work-based program that provides employees with free access to counseling and other support services.

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Check Out Articles for KKR employees

For more information you can reach the plan administrator for KKR at , ; or by calling them at .

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