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

Healthcare Provider Update: Healthcare Provider for Rite Aid Rite Aid employees typically have access to healthcare plans through various insurers, but specific carriers may vary based on the location and plan offerings. Major insurers such as UnitedHealthcare, Aetna, and others often provide coverage options for Rite Aid employees, making it advisable for them to review the available plans and select one that best fits their healthcare needs. Potential Healthcare Cost Increases in 2026 As we head into 2026, Rite Aid employees may face significant increases in healthcare costs due to projected sharp hikes in health insurance premiums. Without the renewal of enhanced federal subsidies, many enrollees in the ACA marketplace could see their out-of-pocket costs rise by over 75%, particularly as some states report premium increases exceeding 60%. Amid rising medical costs driven by factors such as high prices for medications and ongoing pressure from insurers to adjust benefit structures, employees will need to carefully assess their coverage options to mitigate the financial impact and ensure continued access to necessary healthcare. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Rite Aid-sponsored plan. You may also gain more investment options than what may have been available in your Rite Aid-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.'

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 Rite Aid-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 Rite Aid should make before rolling over their money into an IRA, these include:

• Internal management fees might be higher than in a Rite Aid-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 Rite Aid-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 Rite Aid.

 

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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