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

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

Internal management fees might be higher than in a Peabody Energy-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 Peabody Energy-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 Peabody Energy.

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 is the primary purpose of Peabody Energy's 401(k) Savings Plan?

The primary purpose of Peabody Energy's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can employees at Peabody Energy enroll in the 401(k) Savings Plan?

Employees at Peabody Energy can enroll in the 401(k) Savings Plan by completing the enrollment process through the company's benefits portal or by contacting the HR department for assistance.

Does Peabody Energy offer a company match for 401(k) contributions?

Yes, Peabody Energy offers a company match for 401(k) contributions, which helps employees increase their retirement savings.

What is the maximum contribution limit for Peabody Energy's 401(k) Savings Plan?

The maximum contribution limit for Peabody Energy's 401(k) Savings Plan is determined by the IRS and may change annually; employees should check the current limits for the specific year.

Can employees at Peabody Energy change their contribution percentage at any time?

Yes, employees at Peabody Energy can change their contribution percentage at any time, typically through the benefits portal or by contacting HR.

What investment options are available in Peabody Energy's 401(k) Savings Plan?

Peabody Energy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a vesting schedule for the company match in Peabody Energy's 401(k) Savings Plan?

Yes, Peabody Energy has a vesting schedule for the company match, meaning employees must work for the company for a certain period before they fully own the matched contributions.

How can employees at Peabody Energy access their 401(k) account information?

Employees at Peabody Energy can access their 401(k) account information through the company's benefits portal or by contacting the plan administrator.

What happens to Peabody Energy's 401(k) Savings Plan if an employee leaves the company?

If an employee leaves Peabody Energy, they have several options for their 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Peabody Energy plan if allowed.

Are there loans available against the 401(k) balance at Peabody Energy?

Yes, Peabody Energy's 401(k) Savings Plan may allow employees to take loans against their account balance, subject to specific terms and conditions.

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

Peabody Energy announced significant restructuring plans in 2024, including job cuts and the closure of some mining operations. This decision aims to streamline operations and reduce costs amid fluctuating coal prices.