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Healthcare Provider Update: Healthcare Provider for Victoria's Secret Victoria's Secret primarily uses the Aetna health insurance provider for its employee healthcare benefits. This partnership offers employees access to a variety of health plans that typically include options for medical, dental, and vision coverage. Potential Healthcare Cost Increases for Victoria's Secret Employees in 2026 As 2026 approaches, healthcare costs for employees of Victoria's Secret are expected to rise dramatically due to substantial premium hikes in the Affordable Care Act (ACA) marketplace. Without a congressional extension of enhanced premium subsidies, many employees could face out-of-pocket premium increases exceeding 75%. This perfect storm of escalating medical expenses and potential loss of federal assistance may result in rate increases averaging around 20%, but some states could see increases surpassing 60%. Employees should be prepared for these financial pressures that could significantly impact their healthcare budgets in the coming year. Click here to learn more
Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Victoria's Secret-sponsored plan. You may also gain more investment options than what may have been available in your Victoria's Secret-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 Victoria's Secret-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 Victoria's Secret should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Victoria's Secret-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 Victoria's Secret-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 Victoria's Secret.
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 type of retirement plan does Victoria's Secret offer to its employees?
Victoria's Secret offers a 401(k) retirement savings plan to help employees save for their future.
How can employees of Victoria's Secret enroll in the 401(k) plan?
Employees of Victoria's Secret can enroll in the 401(k) plan through the company’s HR portal or by contacting their HR representative for assistance.
Does Victoria's Secret match employee contributions to the 401(k) plan?
Yes, Victoria's Secret provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the eligibility requirement for Victoria's Secret employees to participate in the 401(k) plan?
Most employees of Victoria's Secret are eligible to participate in the 401(k) plan after completing a certain period of service, typically within their first year of employment.
Can part-time employees at Victoria's Secret participate in the 401(k) plan?
Yes, part-time employees at Victoria's Secret may also be eligible to participate in the 401(k) plan, depending on specific criteria set by the company.
What types of investment options are available in Victoria's Secret's 401(k) plan?
Victoria's Secret's 401(k) plan typically offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.
How often can employees of Victoria's Secret change their 401(k) contribution amounts?
Employees of Victoria's Secret can change their 401(k) contribution amounts at designated times throughout the year, usually during open enrollment periods.
What is the vesting schedule for employer contributions in Victoria's Secret's 401(k) plan?
Victoria's Secret has a vesting schedule for employer contributions, which means employees must work for the company for a certain period before they fully own the matching funds.
Can employees take loans from their 401(k) plans at Victoria's Secret?
Yes, employees of Victoria's Secret may have the option to take loans from their 401(k) plans, subject to the plan's specific terms and conditions.
What happens to the 401(k) plan if an employee leaves Victoria's Secret?
If an employee leaves Victoria's Secret, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Victoria's Secret plan if permitted.
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