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 Microchip Technology Employee?

Healthcare Provider Update: Healthcare Provider for Microchip Technology: Microchip Technology utilizes Cigna Healthcare as their primary healthcare provider, offering comprehensive health insurance coverage for their employees and stakeholders. Potential Healthcare Cost Increases in 2026: In 2026, employees of Microchip Technology may face significant increases in healthcare costs amid a challenging insurance landscape. With projected premium hikes averaging around 20% nationally and certain states experiencing surges as high as 66%, many workers could see out-of-pocket expenses rise substantially. The anticipated expiration of enhanced federal subsidies and ongoing medical cost inflation, expected to remain between 7% to 10%, may exacerbate the financial burden on employees and their families. As the healthcare market prepares for these changes, planning ahead and securing more affordable healthcare options will be crucial for maintaining financial stability in the coming year. Click here to learn more

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

Internal management fees might be higher than in a Microchip Technology-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 Microchip Technology-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 Microchip Technology.

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 savings plan does Microchip Technology offer to its employees?

Microchip Technology offers a 401(k) retirement savings plan to help employees save for their future.

How can employees at Microchip Technology enroll in the 401(k) plan?

Employees at Microchip Technology can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for guidance.

Does Microchip Technology provide matching contributions to the 401(k) plan?

Yes, Microchip Technology provides matching contributions to the 401(k) plan, which helps employees increase their retirement savings.

What is the maximum contribution limit for the Microchip Technology 401(k) plan?

The maximum contribution limit for the Microchip Technology 401(k) plan is in line with IRS guidelines, which may change annually. Employees should check the latest limits on the IRS website or consult HR.

Can employees at Microchip Technology take a loan against their 401(k) savings?

Yes, Microchip Technology allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in the Microchip Technology 401(k) plan?

The Microchip Technology 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to tailor their investment strategy.

Is there a vesting schedule for the employer match in the Microchip Technology 401(k) plan?

Yes, Microchip Technology has a vesting schedule for employer match contributions, which means employees must work for a certain period to fully own the matched funds.

How often can employees at Microchip Technology change their contribution amounts to the 401(k) plan?

Employees at Microchip Technology can change their contribution amounts to the 401(k) plan at designated times throughout the year, as specified in the plan documents.

What happens to the 401(k) savings if an employee leaves Microchip Technology?

If an employee leaves Microchip Technology, they have several options for their 401(k) savings, including rolling it over to an IRA or another employer's plan, cashing it out, or leaving it in the Microchip plan if eligible.

Are there any fees associated with the Microchip Technology 401(k) plan?

Yes, there may be fees associated with the Microchip Technology 401(k) plan, including administrative fees and investment-related fees. Employees should review the plan documents for detailed information.