Honda Motor Company Employees & RMDs: What You Need to Know Before Age 73
Healthcare Provider Update: Healthcare Provider for Honda Motor Company:
Honda Motor Company collaborates with various health insurance providers for its employee healthcare needs. While the specific primary provider can vary by region and coverage option, large auto manufacturing companies like Honda typically use national insurers such as UnitedHealthcare, Aetna, or Cigna to manage their employee health plans.
Potential Healthcare Cost Increases for Honda Motor Company in 2026:
As Honda Motor Company prepares for 2026, it faces a landscape marked by significant increases in healthcare costs. Experts predict that overall healthcare expenses for businesses will rise by 8.5%, largely driven by escalating hospital costs and the trend of employers shifting more financial responsibility onto their workers. Additionally, the anticipated expiration of enhanced federal subsidies under the Affordable Care Act (ACA) could lead to marketplace enrollees experiencing premium hikes exceeding 75%, compelling companies like Honda to reconsider their benefits structures to mitigate impacts on employee coverage and costs.
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'Honda Motor Company employees can stay ahead of required minimum distributions by planning early and thoughtfully coordinating withdrawals with their broader retirement income goals.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'Honda Motor Company employees can benefit from understanding RMD rules early so they can thoughtfully incorporate withdrawals into a long-term income plan that fits their personal goals and timing.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
When and how required minimum distributions (RMDs) must be taken.
Which retirement accounts are subject to RMD rules.
Strategies to thoughtfully use RMD withdrawals in retirement.
Under IRS rules, required minimum distributions (RMDs) begin at age 73 for those born between 1951 and 1959. Under these rules, you must take out a specific amount of money annually from tax-deferred retirement plans, such as IRAs, 401(k)s, and 403(b)s, once you turn 73. Answers to common questions are provided below to help you move forward confidently.
What is a required minimum distribution (RMD)?
A required minimum distribution (RMD) is a set amount of money that the IRS mandates you withdraw each year from your tax-deferred retirement accounts beginning at age 73, including accounts you may have contributed to while working for Honda Motor Company.
When do I have to take my RMD?
Every year on December 31, your RMD must be taken. You can wait until April 1 of the year after your 73rd birthday to take your first RMD—but only your first. Delaying may result in taking two RMDs in the same year, which could increase your taxable income.
If I keep working, do I still need to take an RMD?
If you continue working past age 73 and remain in an employer-sponsored plan with your current employer, you may be able to delay RMDs from that account if:
- You are still actively employed
- You own no more than 5% of the company
- The employer plan permits delayed RMDs
This applies only to the plan with your current employer—not to IRAs or plans from former employers.
How is my RMD calculated?
Your RMD is generally calculated by dividing your retirement account balance as of December 31 of the previous year by a life-expectancy factor published by the IRS. The IRS Uniform Lifetime Table is typically used unless a spouse more than 10 years younger is the sole beneficiary.
What can I do with my RMD once I take it?
It helps to think through your options before withdrawing your RMD. For example, Honda Motor Company professionals may:
Invest it: Place funds into a taxable investment account or contribute to a 529 plan (if eligible)
Spend it: Apply funds to retirement lifestyle needs
Gift it: Use a Qualified Charitable Distribution (QCD) directly from an IRA, which can satisfy RMD rules starting at age 70½ and is excluded from taxable income. For 2025, QCDs may reach up to
$108,000 per person
1
Which accounts require RMDs?
RMDs generally apply to:
- Most 401(k) and 403(b) plans
- Traditional, rollover, SIMPLE, and SEP IRAs
- Certain small business retirement accounts
Roth accounts in workplace plans—like a Roth 401(k)—do not require RMDs for the original owner starting in 2024. Beneficiaries of inherited Roth accounts may still need to withdraw funds.
What if I inherit an IRA?
Many general RMD rules still apply to inherited accounts. Your required withdrawal schedule depends on your relationship to the original account owner and applicable IRS inheritance rules.
Can I take all my RMDs from one account?
It depends on the account type:
IRAs: Can be aggregated and withdrawn from one or multiple IRA accounts
403(b)s: May be aggregated but calculated separately
401(k)s: Must be calculated
and
withdrawn from each account individually—including any Honda Motor Company balance still held
Extra withdrawals do not count toward future years’ RMDs.
Are RMDs taxed?
Yes. RMDs are taxed as ordinary income and may be subject to both federal and state income taxes. Taking two RMDs in one year, often caused by delaying the first, can increase your taxable income.
Need help creating your RMD strategy?
Understanding RMDs can influence how you structure your retirement income—especially for Honda Motor Company employees shifting from workplace plans to personal withdrawal strategies. The Retirement Group can help you build an approach that aligns with your situation. Call us at
(800) 900-5867
to get started.
5. Myers, Elizabeth A.
Required Minimum Distribution (RMD) Rules for Original Owners of Retirement Accounts.
Congressional Research Service, 29 Aug. 2024,
www.congress.gov/crs-product/IF12750
.
What type of retirement savings plan does Honda Motor Company offer to its employees?
Honda Motor Company offers a 401(k) retirement savings plan to its employees.
How can employees of Honda Motor Company enroll in the 401(k) plan?
Employees of Honda Motor Company can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
Does Honda Motor Company match employee contributions to the 401(k) plan?
Yes, Honda Motor Company provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.
What is the maximum contribution limit for the 401(k) plan at Honda Motor Company?
The maximum contribution limit for the 401(k) plan at Honda Motor Company is in accordance with IRS guidelines, which may change annually.
Are there any vesting schedules for Honda Motor Company's 401(k) matching contributions?
Yes, Honda Motor Company has a vesting schedule for its matching contributions, which specifies how long employees must work to fully own those contributions.
Can employees of Honda Motor Company take loans against their 401(k) savings?
Yes, Honda Motor Company allows employees to take loans against their 401(k) savings, subject to plan rules and limits.
What investment options are available in Honda Motor Company's 401(k) plan?
Honda Motor Company offers a variety of investment options in its 401(k) plan, including mutual funds, stocks, and bonds.
How often can employees change their contribution amounts in the Honda Motor Company 401(k) plan?
Employees of Honda Motor Company can change their contribution amounts on a quarterly basis or as specified by the plan rules.
Is there an automatic enrollment feature in Honda Motor Company’s 401(k) plan?
Yes, Honda Motor Company offers an automatic enrollment feature for new employees in its 401(k) plan.
What happens to 401(k) savings if an employee leaves Honda Motor Company?
If an employee leaves Honda Motor Company, they have several options for their 401(k) savings, including rolling it over to another retirement account or cashing it out.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Honda provides a defined benefit pension plan and a 401(k) plan with company matching contributions. The defined benefit plan offers retirement income based on years of service and compensation. The 401(k) plan allows employees to save with personal and employer contributions. Honda provides financial planning resources and tools to help employees manage their retirement savings.
Layoffs and Restructuring: Honda announced plans to cut 5% of its global workforce as part of its efforts to streamline operations and focus on electric vehicle (EV) development. Operational Strategy: The company is shifting its focus towards EVs, aiming to phase out internal combustion engines by 2040 (Source: Reuters). Financial Performance: Despite these changes, Honda reported strong financial results for the latest quarter, with a 20% increase in net profit (Source: Honda).
Honda Motor Company offers stock options (SOs) and RSUs as part of its equity compensation packages. Stock options allow employees to purchase company stock at a fixed price after a vesting period, while RSUs vest over several years based on tenure or performance. In 2022, Honda introduced enhancements to its equity programs with performance-based RSUs. This approach continued in 2023 and 2024, with broader RSU availability and performance-linked stock options. Executives and middle management are the primary recipients, ensuring long-term alignment with company goals. [Source: Honda Annual Report 2022, p. 56; Honda Annual Report 2023, p. 58; Honda Annual Report 2024, p. 60]
Honda Motor Company has made substantial advancements in its employee healthcare benefits to address the needs of its workforce in the current economic, investment, tax, and political environment. In 2022, Honda introduced a comprehensive Total Rewards package that includes medical, dental, vision, and prescription coverage. The package also offers telemedicine services, paid long and short-term disability, paid family leave, and a wellbeing rewards program. These benefits are designed to support the overall health and wellbeing of employees, ensuring they have access to necessary healthcare resources and can maintain a healthy work-life balance. This initiative is part of Honda's broader strategy to enhance employee satisfaction and productivity by providing robust healthcare support. In 2023, Honda further expanded its healthcare offerings by introducing new mental health and wellness programs through partnerships with Spring Health. These programs provide employees with access to mental health resources, including counseling and wellness support, which are crucial in the current environment where mental health is a significant concern. Additionally, Honda offers voluntary supplemental health plans, such as critical illness, accident protection, and hospital indemnity insurance, to give employees more choices in managing their healthcare needs. By focusing on comprehensive healthcare benefits, Honda aims to attract and retain top talent, ultimately contributing to its long-term success and resilience in a dynamic economic landscape.
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For more information you can reach the plan administrator for Honda Motor Company at one verizon way Basking Ridge, NJ 7920; or by calling them at (800) 999-1009.
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