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

7 IRA Strategies and Tax Rules General Mills Employees May Be Overlooking

Healthcare Provider Update: General Mills primarily collaborates with UnitedHealthcare for its employees' healthcare coverage. As we look ahead to 2026, significant healthcare cost increases are anticipated. Factors contributing to this rise include the expiration of enhanced federal ACA premium subsidies and increasing medical costs within the marketplace. Reports indicate that some states might see premium hikes of over 60%, with experts warning that without legislative intervention, many consumers could face steep increases in out-of-pocket healthcare expenses, potentially rising as much as 75%. This scenario presents a notable challenge for both employees and employers as they navigate the shifting landscape of healthcare costs. Click here to learn more

“General Mills employees who take the time to understand evolving IRA contribution limits, spousal opportunities, and conversion rules are often better positioned to coordinate personal savings with workplace retirement benefits. I encourage individuals to review these strategies within the context of their broader retirement and estate planning goals while consulting a qualified tax advisor for guidance tailored to their specific situation.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“General Mills employees who carefully evaluate IRA contribution limits, spousal strategies, and conversion considerations can create stronger alignment between their personal savings and employer-sponsored benefits. I encourage individuals to view these IRA decisions as part of a coordinated retirement and estate planning framework while consulting a qualified tax professional for guidance specific to their circumstances.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Key IRA contribution rules and annual limits for 2026.
Strategic considerations such as spousal IRAs, SEP IRAs, and Roth conversions.
Special IRA situations involving alimony, children with earned income, and income phase-outs.

Seven Frequently Ignored Facts About IRAs for General Mills Employees

Many General Mills employees begin thinking about IRA contributions while completing their tax forms and reviewing potential deductions. Whether you participate in company-sponsored retirement benefits or contribute independently, understanding how IRAs fit into your overall strategy can help you evaluate additional planning opportunities.

You might be unaware of a few things regarding IRAs. These are seven facts that are frequently forgotten.

1. An IRA Can Be Opened and Funded by a Nonworking Spouse

A spouse who does not receive a salary can still save for retirement. If you file a joint federal income tax return and one spouse earns taxable compensation, the nonworking spouse can open and contribute to their own traditional or Roth IRA. ¹

The deductible amount of a traditional IRA contribution may be limited based on income if the working spouse participates in an employer-sponsored retirement plan.

The total annual contribution cap for Roth and traditional IRAs in 2026 is $7,500. A catch-up contribution of $1,100 is permitted for individuals age 50 and older. ¹

Combined IRA contributions for both spouses cannot exceed the taxable income reported on the joint return.

2. You Can Still Contribute Even If You Are Not Eligible for a Deduction

Your traditional IRA contribution may not be deductible if your modified adjusted gross income exceeds certain thresholds and you participate in a company retirement plan such as a 401(k) or 403(b). ²

However, nondeductible contributions may still allow earnings to grow on a tax-deferred basis until withdrawal. ²

Assets from a traditional IRA may also be converted to a Roth IRA. ³ Conversions are permitted regardless of income level, although income taxes may apply depending on the amount converted.

3. Alimony May Not Count as Taxable Compensation for IRA Contributions

Under the Tax Cuts and Jobs Act of 2017, alimony payments from divorce or separation agreements signed on or after January 1, 2019 are not deductible to the payer and are not taxable income to the recipient. ⁴

Because IRA contributions must be based on taxable compensation, post-2018 alimony typically does not qualify.

Agreements signed before January 1, 2019 are generally grandfathered under prior rules unless formally modified.

4. Self-Employed? Consider a SEP IRA

If you have consulting income, freelance work, or a side business, you may be eligible to establish a Simplified Employee Pension (SEP) IRA.

SEP IRA contributions are generally made by the employer and may qualify as business deductions. Contribution limits are substantially higher than traditional or Roth IRAs.

Self-employed individuals may contribute up to 25% of qualified compensation, subject to IRS calculation guidelines. IRS Publication 560 includes worksheets for determining limits.

To make contributions for a given tax year, a SEP IRA typically must be established by the tax filing deadline, including extensions.

5. Catch-Up Contributions for Individuals Over Age 50

Individuals age 50 or older may make additional catch-up contributions to a traditional or Roth IRA.

The catch-up amount for 2026 is $1,100, with future adjustments indexed for inflation.

6. A Child Can Contribute to a Roth IRA if They Have Earned Income

A minor with taxable earned income may contribute to a Roth IRA up to the annual limit or the amount of earned income for the year, whichever is less.

Qualified retirement accounts such as IRAs are generally not counted as assets for purposes of determining the Student Aid Index (SAI) on the Free Application for Federal Student Aid (FAFSA), although withdrawals may affect income calculations. ⁵

7. You May Still Access Roth IRA Benefits Even if You Exceed Income Limits

A Roth IRA offers potential advantages such as tax-free qualified withdrawals and no required minimum distributions for the original account holder.

Although income limits restrict direct Roth IRA contributions, individuals may convert assets from a traditional IRA to a Roth IRA regardless of income.

IRS pro-rata rules require that all traditional, SEP, and SIMPLE IRA balances be considered when determining the taxable amount. Accurate tracking of after-tax contributions requires proper reporting, including Form 8606.

Because conversion strategies can involve complex tax considerations, reviewing your personal situation with a qualified tax professional may be helpful.

Support for Your Retirement Planning

For General Mills employees evaluating how IRAs coordinate with workplace retirement benefits, understanding contribution limits, conversion rules, and spousal planning opportunities can play an important role in a broader retirement strategy.

The Retirement Group can assist you in evaluating how these IRA rules align with your long-term goals. If you have questions about retirement planning, you can speak with a representative by calling (800) 900-5867 .

Disclosure: Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

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Articles you may find interesting:

Sources:

1. 'Retirement topics - IRA contribution limits.' IRS, 3 Mar. 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

2. “IRA Contribution Limits for 2025 and 2026.” Fidelity Learn, Fidelity Investments, 26 Jan. 2026, www.fidelity.com/learning-center/smart-money/ira-contribution-limits .

3. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily
include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a
Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required
minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Investing involves
risk, including possible loss of principal.

4. 'Divorce or separation may have an effect on taxes,' IRS Tax Reform Tax Tip, July 8, 2019. https://www.irs.gov/newsroom/divorce-or-separation-may-have-an-effect-on-taxes

5. 'How 6 Different Assets Can Affect Your FAFSA and Financial Aid Eligibility.' Saving for College, by Jeffrey Trull. Jan. 15, 2026. https://www.savingforcollege.com/article/how-7-different-assets-can-affect-your-financial-aid-eligibility

How can employees of General Mills, Inc. maximize their benefits under the BCTGM Retirement Plan, and what factors are considered in determining pension amounts for those nearing retirement? This question aims to explore the intricate details of how General Mills, Inc. structures its pension benefits to support employeesâ€™ future financial stability. It's important for employees to understand the value of their years of service and how this affects their ultimate pension payout as they approach retirement.

Maximizing Benefits under the BCTGM Retirement Plan: Employees of General Mills can maximize their benefits under the BCTGM Retirement Plan by understanding how their years of service and negotiated benefit levels directly affect the pension they receive. The pension amount is determined by the length of service and a defined benefit formula based on the number of years of Benefit Service accrued. As employees approach retirement, they should consider whether they meet eligibility criteria for early or normal retirement, as these factors influence the ultimate pension payout(General_Mills_2024_Pens…).

What are the eligibility requirements for participating in the BCTGM Retirement Plan at General Mills, Inc., and how does this participation impact future retirement benefits? Employees should be well-informed about what constitutes eligibility to participate in the retirement plan. Understanding criteria such as service length, employment status, and union participation is crucial, as it directly relates to their ability to accrue retirement benefits.

Eligibility Requirements for BCTGM Retirement Plan: To participate in the BCTGM Retirement Plan, employees must be regular employees of General Mills covered by a collective bargaining agreement. Eligibility is automatic after completing a probationary period. Participation impacts future retirement benefits as employees begin to accrue pension benefits based on years of service, which contributes to their final payout during retirement(General_Mills_2024_Pens…).

In what ways does General Mills, Inc. ensure that benefits from the BCTGM Retirement Plan remain protected under federal law, and what role does the Pension Benefit Guaranty Corporation (PBGC) play in this? Knowledge of the protections available can significantly influence employees' assurance in the viability of their pension benefits. It is vital for employees to recognize how federal guarantees work in safeguarding their retirement benefits.

Federal Law Protections and PBGC's Role: The BCTGM Retirement Plan is protected under federal law, ensuring that employees’ retirement benefits are safeguarded. The Pension Benefit Guaranty Corporation (PBGC) insures vested benefits, including disability and survivor pensions, up to certain limits. This protection provides employees with assurance that their pensions are protected, even in the event of plan termination(General_Mills_2024_Pens…).

How does General Mills, Inc. address the complexities of vesting in the BCTGM Retirement Plan, and what can employees do if they are concerned about their vested rights? Vesting is a key concept that affects employees' access to benefits over their careers. Employees need to understand the vesting schedule outlined by General Mills, Inc. and the implications it has on their retirement plans.

Vesting in the BCTGM Retirement Plan: Employees vest in the BCTGM Retirement Plan after completing five years of Eligibility Service or upon reaching age 65. Once vested, employees have a non-forfeitable right to their pension benefits, which means they retain their pension rights even if they leave the company before reaching retirement age(General_Mills_2024_Pens…).

What options are available to employees of General Mills, Inc. if they experience a change in their employment status after being vested in the BCTGM Retirement Plan, and how might this impact their future retirement pensions? This question prompts discussion on the plan's provisions regarding reemployment and what employees should be aware of when considering changes to their employment status.

Impact of Employment Status Changes on Pension: If an employee's status changes after being vested in the BCTGM Retirement Plan, such as leaving the company, they may still be entitled to pension benefits. The plan outlines provisions for reemployment and how prior service years are counted toward future pension calculations. Employees who are reemployed may have their previously earned service restored(General_Mills_2024_Pens…).

How does the BCTGM Retirement Plan at General Mills, Inc. work in conjunction with Social Security benefits, and what should employees be aware of regarding offsets or deductions? This can encompass the interplay between corporate pension plans and governmental benefits, which is critical for employees to plan their retirement effectively.

Coordination with Social Security Benefits: The BCTGM Retirement Plan operates in addition to Social Security benefits. There are no direct offsets between the pension and Social Security benefits, meaning employees receive both independently. However, employees should be aware of how the timing of drawing Social Security and pension benefits may affect their overall financial situation(General_Mills_2024_Pens…).

What steps must employees of General Mills, Inc. take to initiate a claim for benefits under the BCTGM Retirement Plan, and how does the claims process ensure fairness and transparency? A clear comprehension of the claims process is essential for employees to secure their pension benefits. This question encourages exploration of the procedures in place to assist employees in understanding their rights and options.

Claiming Benefits under the BCTGM Retirement Plan: Employees must terminate employment before claiming their BCTGM Retirement Plan benefits. The claims process involves submitting the required forms, and employees must ensure they provide all necessary documentation for a smooth process. The pension is generally paid monthly, with lump-sum options available under specific circumstances(General_Mills_2024_Pens…).

How does the retirement benefit formula of the BCTGM Retirement Plan operate, and what specific factors should an employee of General Mills, Inc. consider while planning for retirement? Delving into the calculations involved in determining retirement benefits is important for employees to understand how their service years and other contributions come together to form their final retirement payout.

Retirement Benefit Formula: The retirement benefit formula is calculated based on the years of Benefit Service and a defined benefit level. As of 2024, for each year of Benefit Service, employees receive $87 per month (increasing to $88 after June 1, 2025). Planning for retirement involves considering how long they will work and the benefit level in place at the time of retirement(General_Mills_2024_Pens…).

What additional resources or support does General Mills, Inc. provide to assist employees in planning their retirement and ensuring they make the most of their benefits offered under the BCTGM Retirement Plan? Understanding the tools and resources available can empower employees to take proactive steps in managing their retirement plans effectively.

Resources for Retirement Planning: General Mills offers resources like the Benefits Service Center and online portals (e.g., www.mygenmillsbenefits.com) to assist employees with retirement planning. These tools help employees understand their benefits, calculate potential payouts, and explore options for maximizing their retirement income(General_Mills_2024_Pens…).

How can employees contact General Mills, Inc. for further information about the BCTGM Retirement Plan or specific queries related to their retirement benefits? This question is crucial so employees know the appropriate channels for communication and can seek clarification on any concerns they may have regarding their retirement planning.

Contact Information for Plan Inquiries: Employees can contact General Mills for more information about the BCTGM Retirement Plan through the Benefits Service Center at 1-877-430-4015 or visit www.mygenmillsbenefits.com. This contact provides direct access to support and answers to questions about their retirement benefits(General_Mills_2024_Pens…).

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

General Mills offers both a defined benefit pension plan and a defined contribution plan. The defined benefit plan calculates benefits based on years of service and compensation. The defined contribution plan allows for personal and employer contributions to retirement savings.

Restructuring and Layoffs: General Mills is implementing a restructuring plan that includes laying off approximately 700 employees globally. This move aims to reduce costs and improve operational efficiency (Source: General Mills). Financial Performance: The company reported a strong financial performance in Q3 2023, with net sales increasing by 8% year-over-year (Source: General Mills). Strategic Adjustments: The restructuring is part of General Mills’ broader strategy to focus on its core businesses and enhance profitability (Source: General Mills).

General Mills provides stock options (SOs) and Restricted Stock Units (RSUs) as part of its compensation packages to employees. Stock options allow employees to purchase company stock at a fixed price after a specified vesting period, while RSUs vest over a few years based on performance or tenure. In 2022, General Mills enhanced its equity compensation programs with performance-based RSUs to retain talent and align employee incentives with corporate goals. This continued in 2023 and 2024, with broader RSU programs and performance-linked stock options. Executives and middle management receive substantial portions of their compensation in stock options and RSUs, fostering long-term alignment with company performance. [Source: General Mills Annual Report 2022, p. 45; General Mills Annual Report 2023, p. 47; General Mills Annual Report 2024, p. 49]

General Mills has been focusing on enhancing its employee healthcare benefits to address the evolving economic, investment, tax, and political environment. In 2022, the company made significant updates to its healthcare plans, which included options for high and low deductibles, comprehensive wellness programs, and expanded mental health resources. These changes were part of General Mills' broader strategy to ensure the well-being of its employees, recognizing that a healthy workforce is crucial for maintaining productivity and morale in a competitive market. Additionally, the company invested in initiatives to support diverse and inclusive work environments, which further underscores its commitment to employee welfare. In 2023, General Mills continued to refine its healthcare offerings by implementing more personalized care options through partnerships with local healthcare providers. This approach aimed to enhance preventive health services and chronic disease management, aligning with the company's goal of fostering a healthier, more resilient workforce. The 2024 Global Responsibility Report highlights these efforts, emphasizing the importance of comprehensive healthcare benefits in attracting and retaining top talent amid economic uncertainties. By focusing on robust healthcare and wellness programs, General Mills aims to create a supportive environment that enables employees to thrive, which is essential for sustaining long-term business success.

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https://www.generalmills.com/Documents/2022-pension-plan.pdf - Page 5, https://www.generalmills.com/Documents/2023-pension-plan.pdf - Page 12, https://www.generalmills.com/Documents/2024-pension-plan.pdf - Page 15, https://www.generalmills.com/Documents/401k-plan-2022.pdf - Page 8, https://www.generalmills.com/Documents/401k-plan-2023.pdf - Page 22, https://www.generalmills.com/Documents/401k-plan-2024.pdf - Page 28, https://www.generalmills.com/Documents/rsu-plan-2022.pdf - Page 20, https://www.generalmills.com/Documents/rsu-plan-2023.pdf - Page 14, https://www.generalmills.com/Documents/rsu-plan-2024.pdf - Page 17, https://www.generalmills.com/Documents/healthcare-plan-2022.pdf - Page 23