Healthcare Provider Update: Healthcare Provider for VF Corp VF Corporation partners with various healthcare insurers for employee benefits, with notable engagement from UnitedHealthcare. This partnership allows them to provide comprehensive healthcare options to their employees, aligning with the company's commitment to employee health and well-being. Potential Healthcare Cost Increases in 2026 As VF Corp looks ahead to 2026, significant increases in healthcare costs are anticipated. The Affordable Care Act (ACA) marketplace is set to experience premium hikes averaging around 20%, driven by escalating medical costs and the looming expiration of enhanced federal subsidies, which could raise out-of-pocket premiums by over 75% for the majority of enrollees. Major insurers are reporting substantial financial pressures, exacerbated by rising labor costs, drug pricing, and ongoing inflation, leading to an uncertain outlook for both employees and employers in managing healthcare expenses. Click here to learn more
Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a VF Corp.-sponsored plan. You may also gain more investment options than what may have been available in your VF Corp.-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.
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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 VF Corp.-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 VF Corp. should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a VF Corp.-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 VF Corp.-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 VF Corp..
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 the 401(k) plan at VF Corp.?
The primary purpose of the 401(k) plan at VF Corp. is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.
How can employees at VF Corp. enroll in the 401(k) plan?
Employees at VF Corp. can enroll in the 401(k) plan by accessing the company’s benefits portal and completing the enrollment process during the designated enrollment period.
What types of contributions can employees make to the VF Corp. 401(k) plan?
Employees at VF Corp. can make pre-tax contributions, Roth after-tax contributions, and, in some cases, catch-up contributions if they are age 50 or older.
Does VF Corp. offer a company match for 401(k) contributions?
Yes, VF Corp. offers a company match for employee contributions to the 401(k) plan, which helps to enhance retirement savings.
What is the vesting schedule for the company match at VF Corp.?
The vesting schedule for the company match at VF Corp. typically follows a graded schedule, where employees become fully vested after a certain number of years of service.
Can employees at VF Corp. take loans against their 401(k) savings?
Yes, employees at VF Corp. may have the option 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 VF Corp. 401(k) plan?
The VF Corp. 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to diversify their portfolios.
How often can employees change their contribution amounts to the VF Corp. 401(k) plan?
Employees at VF Corp. can change their contribution amounts to the 401(k) plan at any time, subject to the plan's rules and regulations.
What resources does VF Corp. provide to help employees understand their 401(k) options?
VF Corp. provides various resources, including educational materials, webinars, and access to financial advisors, to help employees understand their 401(k) options.
Are there any fees associated with the VF Corp. 401(k) plan?
Yes, there may be fees associated with the VF Corp. 401(k) plan, such as administrative fees and investment management fees, which are disclosed in the plan documents.
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