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 Viatris Employee?

Healthcare Provider Update: Viatris Healthcare Provider Information Viatris, as a global healthcare company, partners with a variety of healthcare providers to ensure that high-quality medicines are accessible to patients. While specific healthcare partnerships vary by region and the type of products offered, Viatris focuses on collaborating with providers involved in specialty pharmaceuticals and chronic disease management. This includes partnerships with hospitals, clinics, and pharmacies to enhance patient health outcomes through innovative solutions and patient access programs. Brief Overview of Potential Healthcare Cost Increases in 2026 As healthcare costs continue to rise, Viatris employees may face significant increases in their out-of-pocket expenses starting in 2026. Projections indicate that premiums for Affordable Care Act (ACA) marketplace plans could surge, with some states experiencing hikes of over 60%. This surge stems from a confluence of factors, including the expected expiration of enhanced federal premium subsidies and ongoing medical inflation, which is projected to exacerbate the burden on consumers. Companies are also revising their employee health plans, potentially leading to higher deductibles and more substantial cost-sharing, placing greater financial pressure on employees seeking affordable healthcare coverage. Click here to learn more

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

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

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 Viatris 401(k) plan?

The Viatris 401(k) plan is a retirement savings plan that allows eligible employees to save for retirement through pre-tax and/or Roth contributions.

How can I enroll in the Viatris 401(k) plan?

You can enroll in the Viatris 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided there.

What is the employer match for the Viatris 401(k) plan?

Viatris offers a matching contribution to the 401(k) plan, which may vary based on your contributions and the company's policy. You should refer to the plan documents for specific details.

When can I start contributing to the Viatris 401(k) plan?

Eligible employees can start contributing to the Viatris 401(k) plan after completing the required waiting period, typically within the first few months of employment.

What types of contributions can I make to the Viatris 401(k) plan?

Employees can make pre-tax contributions, Roth contributions, and potentially after-tax contributions to the Viatris 401(k) plan, depending on the specific plan provisions.

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

Yes, there may be administrative fees and investment-related fees associated with the Viatris 401(k) plan. You can find detailed information in the plan's fee disclosure document.

How does the Viatris 401(k) plan help me save for retirement?

The Viatris 401(k) plan allows you to save for retirement on a tax-advantaged basis, helping you grow your savings over time through contributions and potential employer matching.

Can I take a loan from my Viatris 401(k) plan?

Yes, the Viatris 401(k) plan may allow loans, subject to certain conditions and limits. You should review the plan documents or consult the HR department for specific details.

What happens to my Viatris 401(k) plan if I leave the company?

If you leave Viatris, you will have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with Viatris, depending on the plan's rules.

How often can I change my contributions to the Viatris 401(k) plan?

You can typically change your contribution amount to the Viatris 401(k) plan at least once per year or during designated enrollment periods.