Texas Instruments Employees & RMDs: What You Need to Know Before Age 73
Healthcare Provider Update: Healthcare Provider for Texas Instruments
Texas Instruments primarily provides health benefits to its employees through Aetna. Aetna offers a variety of health plans, including medical, dental, and vision insurance options, ensuring comprehensive coverage for employees and their families.
Potential Healthcare Cost Increases in 2026
As Texas Instruments navigates the healthcare landscape, employees may face significant challenges due to anticipated healthcare cost increases in 2026. Industry reports project that health insurance premiums for Affordable Care Act (ACA) plans could rise substantially, with some states seeing increases exceeding 60%. Factors contributing to this surge include the potential expiration of enhanced federal subsidies and ongoing medical cost inflation, which is expected to continue impacting healthcare affordability. With more than 92% of marketplace enrollees potentially facing over a 75% increase in out-of-pocket premiums, proactive financial planning becomes crucial for both the company and its workforce.
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'Texas Instruments 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.
'Texas Instruments 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 Texas Instruments.
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, Texas Instruments 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 Texas Instruments 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 Texas Instruments 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 Texas Instruments offer to its employees?
Texas Instruments offers a 401(k) retirement savings plan to its employees.
Is there a company match for contributions to the Texas Instruments 401(k) plan?
Yes, Texas Instruments provides a company match for employee contributions to the 401(k) plan, subject to certain limits.
At what age can employees of Texas Instruments start contributing to the 401(k) plan?
Employees of Texas Instruments can start contributing to the 401(k) plan as soon as they are eligible, typically upon hire or after a short waiting period.
How can Texas Instruments employees enroll in the 401(k) plan?
Texas Instruments employees can enroll in the 401(k) plan through the company's online benefits portal or by contacting the HR department for assistance.
What investment options are available in the Texas Instruments 401(k) plan?
The Texas Instruments 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Does Texas Instruments allow employees to take loans from their 401(k) accounts?
Yes, Texas Instruments allows employees to take loans from their 401(k) accounts, subject to specific terms and conditions.
What is the vesting schedule for the company match in the Texas Instruments 401(k) plan?
The vesting schedule for the company match in the Texas Instruments 401(k) plan typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.
Can Texas Instruments employees change their contribution percentage at any time?
Yes, Texas Instruments employees can change their contribution percentage at any time, usually through the online benefits portal.
What happens to the 401(k) plan if an employee leaves Texas Instruments?
If an employee leaves Texas Instruments, they can choose to roll over their 401(k) balance to another retirement account, leave it in the Texas Instruments plan (if eligible), or withdraw the funds, subject to taxes and penalties.
Are there any fees associated with the Texas Instruments 401(k) plan?
Yes, there may be fees associated with the Texas Instruments 401(k) plan, which can include administrative fees and investment-related fees. Employees are encouraged to review the plan documents for details.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Texas Instruments offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan includes a cash balance component, where benefits grow based on years of service and compensation, with interest credits added annually. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Texas Instruments provides financial planning resources and tools to help employees manage their retirement savings.
Layoffs and Restructuring: Texas Instruments announced it will lay off 1,700 employees as part of a broader effort to shift focus from its mobile business to embedded markets. The job cuts represent about 5% of TI's staff and are aimed at cutting costs and increasing presence in the burgeoning embedded device market (Sources: Manufacturing.net, Hartford Business Journal). Operational Changes: The layoffs will begin in early November 2024 and be spaced out until the end of January 2025. Employees affected by these layoffs include technicians and engineers who couldn't find other positions within the company (Source: Manufacturing.net). Strategic Focus: TI's strategic shift involves concentrating on embedded connectivity in everyday items, including appliances, cars, and clothing, to align with industry trends and future growth opportunities (Source: Hartford Business Journal).
Texas Instruments provides both RSUs and stock options as part of its employee compensation. RSUs vest over time, converting into shares, while stock options allow employees to buy shares at a set price.
Texas Instruments (TI) offers a comprehensive healthcare benefits package aimed at supporting the diverse needs of its employees. For 2023, TI continued to provide 100% coverage for periodic preventive health office visits and screening tests, without any copay or deductibles. Additionally, the company offers a range of options including health savings accounts (HSAs), flexible spending accounts (FSAs), and various insurance plans like dental, vision, and life insurance. Mental health benefits and wellness programs are also integral parts of the healthcare offerings at TI. In 2024, Texas Instruments has further refined its benefits to include enhanced mental health resources and flexible work schedules. Employees can access job training, tuition reimbursement, and paid volunteer time, reflecting TI's commitment to overall well-being and professional growth. These benefits are particularly important in today's economic and political environment, where maintaining a healthy work-life balance and financial security is crucial. By continuously updating its healthcare benefits, Texas Instruments ensures that employees are well-supported in managing their health and career development.
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