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 MDU Resources Group Employee?

Healthcare Provider Update: Healthcare Provider for MDU Resources Group MDU Resources Group, a utility and construction services company, primarily partners with various healthcare providers and insurance companies that serve its employees, including Blue Cross Blue Shield and UnitedHealthcare for healthcare coverage options. Brief Overview of Projected Healthcare Cost Increases in 2026 As we approach 2026, healthcare consumers face significant challenges as premiums for Affordable Care Act (ACA) marketplace plans are projected to rise sharply, with some states reporting increases exceeding 60%. The anticipated loss of enhanced federal premium subsidies coupled with escalating medical costs is creating a perfect storm for healthcare expenses. According to industry experts, without congressional action to extend these subsidies, over 22 million enrollees may experience out-of-pocket premium hikes of more than 75%, underscoring the need for proactive financial planning for healthcare in the coming year. The landscape suggests that the combination of heightened rates and diminished financial assistance could push many families toward more financial strain in 2026. Click here to learn more

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

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

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 types of retirement savings plans does MDU Resources Group offer?

MDU Resources Group offers a 401(k) savings plan to help employees save for retirement.

How can employees of MDU Resources Group enroll in the 401(k) plan?

Employees can enroll in the MDU Resources Group 401(k) plan by visiting the company’s benefits portal or contacting the HR department for assistance.

Does MDU Resources Group match employee contributions to the 401(k) plan?

Yes, MDU Resources Group provides a matching contribution to the 401(k) plan, subject to certain limits.

What is the maximum contribution limit for the MDU Resources Group 401(k) plan?

The maximum contribution limit for the MDU Resources Group 401(k) plan is aligned with IRS guidelines, which may change annually.

Can employees of MDU Resources Group take loans against their 401(k) savings?

Yes, MDU Resources Group allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What investment options are available in the MDU Resources Group 401(k) plan?

The MDU Resources Group 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

When can employees of MDU Resources Group start withdrawing from their 401(k) accounts?

Employees can start withdrawing from their MDU Resources Group 401(k) accounts at age 59½, or earlier under certain circumstances.

Is there a vesting schedule for the employer match in the MDU Resources Group 401(k) plan?

Yes, MDU Resources Group has a vesting schedule for the employer match, which determines how much of the match employees are entitled to based on their years of service.

How often can employees change their contribution amounts to the MDU Resources Group 401(k) plan?

Employees of MDU Resources Group can change their contribution amounts on a quarterly basis or as specified in the plan documents.

What happens to the 401(k) savings if an employee leaves MDU Resources Group?

If an employee leaves MDU Resources Group, they can choose to roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the MDU plan if eligible.

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

MDU Resources Group Pension Plan Years of Service and Age Qualification: Generally, employees must have a minimum of 5 years of service to qualify for the pension plan. Age qualification usually begins at 55 for early retirement benefits. Pension Formula: The pension benefit is typically calculated based on a formula involving years of service and average salary. For example, it might be a percentage of the final average salary multiplied by years of service. Name of 401(k) Plan:MDU Resources Group 401(k) Plan Who Qualifies for the 401(k) Plan: Employees who meet eligibility requirements, which usually include being employed for a specific period or meeting age criteria, qualify for the 401(k) plan.

Restructuring and Layoffs: In 2023, MDU Resources Group announced a strategic restructuring plan aimed at streamlining operations and enhancing efficiency. This plan included a workforce reduction, impacting several positions across different departments. The restructuring is part of a broader effort to realign the company's focus and improve its competitive position in the market. This news is important to address due to the ongoing economic uncertainty and evolving investment landscape. Investors and employees alike should stay informed about these changes as they may impact the company's performance and stability.

MDU Resources Group offers stock options and RSUs as part of its compensation packages. For 2022, employees had access to a mix of stock options and RSUs, which were granted based on performance metrics and tenure.

2022-2023: There may have been adjustments to the health plans in response to changing healthcare laws or employee feedback. Specific updates could include changes to premiums, deductibles, or the addition of new benefits. 2024: Recent news might cover enhancements in health benefits or responses to healthcare reforms. Look for any press releases or news articles regarding benefits changes, such as increased coverage or new wellness programs.