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 Zoetis Employee?

Healthcare Provider Update: Healthcare Provider for Zoetis: Zoetis, a leading global animal health company, primarily collaborates with veterinary healthcare providers. Its services and products are distributed through veterinarians, who provide essential healthcare to pets and livestock, thus ensuring effective treatment through its medications and vaccines. Blog Post Paragraph on Potential Healthcare Cost Increases in 2026: As 2026 approaches, significant healthcare cost increases loom, particularly within the Affordable Care Act (ACA) marketplace. With insurers requesting average premium hikes that exceed 60% in critical states like New York, consumers could face an alarming rise in out-of-pocket expenses-over 75% for a vast majority of policyholders if enhanced federal subsidies are not extended. Market pressures from escalating medical costs, alongside the financial performance of leading insurers reporting record profits, underscore the urgency for consumers to prepare for these potential financial challenges ahead. Click here to learn more

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

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

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