New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating Change: Financial Insights for Divorced Employees of PC Connection

Healthcare Provider Update: PC Connection offers medical, dental, vision, and prescription coverage, plus HSAs, wellness programs, and disability insurance 8. With ACA insurers requesting the largest hikes since 2018, PC Connections internal plans may offer more consistent and affordable coverage. Click here to learn more

The latest research suggests that divorce rates in the U.S. have been falling in recent decades. Still, many people face the difficult crossroads that comes when their marriage ends.

Getting a divorce is a painful, emotional process. Don’t be in such a hurry to reach a settlement that you make poor decisions that can have life-long consequences. For any of our PC Connection clients who may possibly have to have a divorce, here are a few financial ideas that may help you prepare.

The most important task these PC Connection employees can do is to get their finances organized. Identify all your assets and make copies of important financial papers, such as deeds, tax returns, and investment records. When it comes to dividing up your assets, consider mediation as a low-cost alternative to litigation. Most states have equitable-distribution laws that require shared assets to be divided 50/50 anyway. When a divorce becomes contentious, attorney’s fees can accumulate.

From a financial perspective, divorce means taking all the income previously used to run one household and stretching it out over two residences, two utility bills, two grocery lists, etc. There are other hidden costs as well, such as counseling for you or your children. Divorces also may require incurring one-time fees, such as a security deposit on a rental property, moving costs, or increased child-care.

Finally, dividing assets may sound simple but it can be quite complex. The forced sale of a home or investment portfolio may have tax consequences. Potential tax liability also can make two seemingly equal assets have varying net values. Additionally, when pulling apart a portfolio, it makes sense to consider how each asset will suit the prospective recipient in terms of risk tolerance and liquidity.

Articles you may find interesting:

We'd like our PC Connection clients to remember, the information in this article is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

During a divorce, many factors are competing for attention. By these PC Connection employees understanding a few key concepts, they may be able to avoid making costly financial mistakes.

Average Interest Rate

Chart Source: Familyinequality.com, 2019

1. The Wall Street Journal, 2019

What type of retirement plan does PC Connection offer to its employees?

PC Connection offers a 401(k) retirement savings plan to its employees.

When can employees at PC Connection enroll in the 401(k) plan?

Employees at PC Connection can enroll in the 401(k) plan during the initial enrollment period or during the annual open enrollment period.

Does PC Connection match employee contributions to the 401(k) plan?

Yes, PC Connection offers a matching contribution to employee contributions up to a certain percentage.

What is the vesting schedule for employer contributions at PC Connection?

The vesting schedule for employer contributions at PC Connection typically follows a graded vesting schedule over a period of years.

How can employees at PC Connection access their 401(k) account information?

Employees at PC Connection can access their 401(k) account information through the company's designated retirement plan website or portal.

What investment options are available in PC Connection's 401(k) plan?

PC Connection's 401(k) plan offers a variety of investment options including mutual funds, target-date funds, and other investment vehicles.

Can employees at PC Connection take loans against their 401(k) savings?

Yes, employees at PC Connection may be able to take loans against their 401(k) savings, subject to specific plan rules.

What is the minimum contribution percentage required for employees at PC Connection to participate in the 401(k) plan?

The minimum contribution percentage required for employees at PC Connection to participate in the 401(k) plan is typically set at 1% of their salary.

Are there any penalties for withdrawing funds from the PC Connection 401(k) plan before retirement age?

Yes, there are generally penalties for withdrawing funds from the PC Connection 401(k) plan before reaching retirement age, unless certain conditions are met.

How often can employees at PC Connection change their contribution amount to the 401(k) plan?

Employees at PC Connection can change their contribution amount during the annual open enrollment period or as permitted by the plan.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

In 2024, PC Connection announced a restructuring plan that involves a reduction of approximately 5% of its workforce. The company also revised its 401(k) matching contributions, reducing the match percentage from 6% to 4%. This restructuring is part of a broader strategy to streamline operations and focus on high-growth areas.