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 Sanmina Employee?

Healthcare Provider Update: Sanmina, a global provider of integrated manufacturing solutions, partners with various healthcare providers to support the health and wellbeing of its employees. Typically, Sanmina's healthcare offerings include comprehensive insurance plans from major providers, allowing employees to receive necessary care through reputable networks. As we look towards 2026, healthcare costs are poised for significant increases, particularly impacting those reliant on Affordable Care Act (ACA) plans. Premiums are expected to rise sharply, with some states projecting hikes exceeding 60%. Contributing factors include the anticipated expiration of enhanced federal subsidies, which could leave over 22 million enrollees facing out-of-pocket costs more than 75% higher than in previous years. The combined pressures of soaring medical costs and reduced financial support are likely to provoke serious conversations about healthcare affordability for many individuals and families. Click here to learn more

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

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

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 401(k) plan offered by Sanmina?

The 401(k) plan offered by Sanmina is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does Sanmina match employee contributions to the 401(k) plan?

Sanmina provides a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, up to a certain limit.

When can Sanmina employees enroll in the 401(k) plan?

Sanmina employees can enroll in the 401(k) plan during the initial onboarding process or during designated open enrollment periods.

What types of investment options are available in Sanmina's 401(k) plan?

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

Are there any fees associated with Sanmina's 401(k) plan?

Yes, Sanmina's 401(k) plan may have administrative fees and investment fees that are disclosed in the plan documents provided to employees.

How can Sanmina employees access their 401(k) account information?

Sanmina employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator for assistance.

What is the vesting schedule for Sanmina's 401(k) matching contributions?

The vesting schedule for Sanmina's 401(k) matching contributions typically follows a graded schedule, which means employees earn rights to the matching contributions over a period of time.

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

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

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

If Sanmina employees leave the company, they have several options for their 401(k) accounts, including rolling over the balance to another retirement account or cashing out, subject to taxes and penalties.

How often can Sanmina employees change their contribution rates to the 401(k) plan?

Sanmina employees can typically change their contribution rates to the 401(k) plan at any time, subject to the plan's specific guidelines.