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

Top 401(k) Pitfalls Every TD Synnex Employee Should Know for a Brighter Retirement

Healthcare Provider Update: Healthcare Provider for TD Synnex TD Synnex partners with a variety of healthcare providers to offer employee health benefits, primarily through major insurers including UnitedHealthcare and Anthem. These providers deliver comprehensive health plans that support the diverse needs of TD Synnex's workforce, emphasizing access to quality care and preventive services. Blog Post Paragraph on Potential Healthcare Cost Increases in 2026 As we look towards 2026, TD Synnex and its employees face the prospect of substantial healthcare cost increases. With health insurance premiums for Affordable Care Act (ACA) marketplace plans anticipated to rise dramatically-some state filings indicating hikes of over 60%-the financial burden on policyholders is set to escalate. The potential expiration of enhanced federal premium subsidies could push out-of-pocket costs for over 22 million Americans to soar by more than 75%. Coupled with rising medical costs, including those for hospital services and prescription drugs, businesses like TD Synnex will need to navigate these challenges to maintain access to affordable healthcare for their employees. Click here to learn more

In today's evolving economic landscape, a significant challenge facing many Americans is securing a comfortable retirement from TD Synnex, as the rising cost of living and savings deficits pose substantial hurdles. This situation is further compounded by difficulties in funding retirement accounts, a concern highlighted by a recent CNBC Your Money Survey revealing that 41% of workers do not contribute to a 401(k) or employer-sponsored plan.

Despite the clear advantages of workplace retirement plans, many TD Synnex employees are not fully utilizing these opportunities. Joe Buhrmann, a senior financial planning consultant at eMoney Advisor, notes that only a small subset of workers are maximizing their employer-sponsored plans to build a substantial nest egg. One critical aspect often overlooked is the employer match, a crucial component of retirement savings. Shockingly, data from Fidelity, the largest 401(k) plan provider in the U.S., indicates that about 22% of plan participants are not receiving the full match.

The average company match for a 401(k) plan, as reported by Fidelity for the third quarter of 2023, stands at 4.7% of a worker's salary, typically ranging between 3% and 6%. Consequently, couples with dual employer savings plans could strategically benefit from prioritizing the plan with the more generous employer match. Mike Shamrell, Fidelity’s vice president of thought leadership, emphasizes the importance of contributing enough to attain the full match, which could translate into thousands of additional dollars annually towards retirement savings. To facilitate this, Shamrell suggests auto-escalating contributions, allowing for a gradual increase in savings each year.

The IRS has responded to these challenges by increasing the contribution limits for retirement accounts in 2024, with the thresholds now set at $23,000 for 401(k) plans and $7,000 for IRAs. This adjustment provides an opportunity for increased savings in anticipation of TD Synnex retirement.

However, a concerning trend is the withdrawal of funds from retirement accounts during tough financial times, which undermines the benefits of compound interest. Reports indicate a rise in 401(k) withdrawals amidst prolonged high inflation. Financial experts generally advise against tapping into these funds. If necessary, understanding the distinctions between a loan and a withdrawal from a 401(k) is crucial. A 401(k) loan allows borrowing up to 50% of the account balance or $50,000, whichever is less, with a repayment period of five years. On the other hand, withdrawals may incur a 10% tax penalty if taken before age 59½, except in specific hardship situations.

Looking ahead, a new provision set to take effect in 2024 will enable savers to make a single withdrawal of up to $1,000 annually for personal or family emergencies, offering a lifeline in immediate need situations.

The final piece of advice revolves around maintaining a long-term perspective. Despite market volatility leading to a nearly 25% loss in 401(k) account balances in 2022, Fidelity reports an average balance rebound of $107,700, an 11% increase from the previous year. Workers consistently investing in their plan for 15 years have witnessed their average balances soar from $56,300 in 2008 to $448,800. Therefore, it is crucial to have an appropriate asset allocation and contribute consistently, irrespective of market fluctuations. Changes to a 401(k) should not be based on short-term market trends, as this could result in missed growth opportunities or unnecessary risk exposure.

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An important consideration for those nearing retirement, particularly around age 60, is the potential impact of Required Minimum Distributions (RMDs) from 401(k) plans. Starting at age 72, retirees must begin taking RMDs from their 401(k)s, which are calculated based on the account balance and life expectancy. This can significantly affect tax liabilities and retirement income planning. As reported by the IRS in 2023, failing to take these distributions can result in a hefty 50% excise tax on the amount that should have been withdrawn. Thus, effective planning for RMDs is crucial to avoid unnecessary taxes and optimize retirement income for TD Synnex retirees

In summary, understanding and maximizing employer-sponsored retirement plans, being cautious about withdrawing retirement funds, and maintaining a long-term investment strategy are pivotal for building a secure financial future and a comfortable retirement.

Navigating a 401(k) plan effectively is akin to captaining a sailboat on a long voyage. Just as a skilled sailor must understand the intricacies of their vessel, know when to adjust the sails to catch the wind, and be aware of weather changes, individuals approaching retirement must similarly understand the nuances of their 401(k) plan. Maximizing employer matches is like harnessing favorable winds – it propels you further without extra effort. Avoiding premature withdrawals is akin to not dipping into your emergency supplies unless absolutely necessary, preserving resources for when they're truly needed. And planning for RMDs (Required Minimum Distributions) is like charting your course in advance, ensuring you're not caught off guard by unexpected currents (tax liabilities) later in your journey. Just as a successful voyage requires continuous attention and adjustment, so does managing a 401(k) for a secure and comfortable retirement from TD Synnex.

What are the key features of the retirement plans offered by TD that differentiate it from other companies in the industry, and how do these features benefit employees nearing retirement? Employees might be interested in understanding the specifics of the defined benefit pension plan, the 401(k) options, and any contributory plans, particularly how TD's offerings can provide financial security in their retirement years.

Key Features of TD Retirement Plans: TD offers an industry-leading, fully bank-paid defined benefit pension plan, particularly for eligible employees with salaries up to the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) maximum pensionable earnings. For salaries exceeding that threshold, an optional contributory pension plan is available. Additionally, TD provides a 401(k) retirement plan, including a bank contribution between 2% and 6% of pay and a match up to 4.5%, allowing employees to receive up to 10.5% in retirement savings contributions. This combination of pension and 401(k) benefits ensures robust financial security for employees nearing retirement(TD_Overview_of_Benefits…).

How can TD employees maximize their pension contributions and benefits to ensure a comfortable retirement, and what steps can they take to optimize their participation in TD's Employee Future Builder Program? This question would help employees understand the importance of planning and how maximizing contributions can lead to enhanced retiree financial security, particularly with the added benefits TD provides.

Maximizing Pension Contributions and Benefits: TD employees can maximize their pension contributions and benefits by fully utilizing both the defined benefit plan and the 401(k) retirement plan. By contributing the maximum amount to the 401(k), employees can take full advantage of TD's matching contributions, significantly boosting their retirement savings. Participation in the Employee Future Builder Program, which encourages saving through payroll deductions and lump sums, can also help employees optimize their retirement outcomes(TD_Overview_of_Benefits…).

In what ways does TD support employeesâ€™ health and wellness during their employment and into retirement, and how do these initiatives impact overall employee satisfaction and retention? A discussion on the health risks, preventive measures provided by the wellness programs, and the flexibility of benefits can serve as a roadmap for employees to utilize available resources effectively.

Health and Wellness Support: TD promotes employee health and wellness through a comprehensive benefits plan that covers medical, dental, disability, and vision care. Employees also have access to health consultation services and various wellness tools, such as online health risk assessments and on-site wellness services like massages and flu shots. These initiatives support overall employee well-being and contribute to higher satisfaction and retention rates(TD_Overview_of_Benefits…).

What options do TD employees have for accessing healthcare benefits in retirement, and how does TD ensure continuity of care for retirees with medical and dental plans? This question should focus on the eligibility criteria, coverage details, and support systems that TD has in place to assist employees transitioning into retirement.

Healthcare Benefits in Retirement: TD provides retiree medical and dental benefits to eligible groups, though some of these plans have been closed to new members in the U.S. Continuity of care is ensured through subsidized coverage, helping retirees manage their healthcare needs as they transition from active employment to retirement(TD_Overview_of_Benefits…).

How do the retirement savings plans at TD compare with industry standards in terms of employer contributions and matching programs, and what implications does this have for employees' long-term financial health? Employees would benefit from a comparison that highlights TD's competitive advantages and the potential impact on their retirement savings over time.

Comparison with Industry Standards: TD's retirement savings plans stand out in the industry due to its generous 401(k) matching program, where the bank matches up to 4.5% of employee contributions, alongside a fixed contribution of up to 6%. This level of employer contribution exceeds industry averages, significantly enhancing employees' long-term financial health(TD_Overview_of_Benefits…).

What resources are available to TD employees who need assistance navigating their benefits and retirement options, and how can these resources help with decision-making as they approach retirement? This could cover the Employee Assistance Program, financial advisory services, and other tools that help employees make informed decisions regarding their benefits.

Resources for Navigating Benefits: TD offers several resources to help employees navigate their benefits, including financial advisory services through the Employee Assistance Program (EAP) and tools such as the Employee Future Builder Program. These resources help employees make informed decisions about their benefits, particularly as they approach retirement(TD_Overview_of_Benefits…).

How does participation in TD's Employee Ownership Plan enhance the financial outlook for employees as they prepare for retirement, and why is this plan an attractive option for them? Employees would want to explore the mechanics of this plan, its benefits, and any strategies for maximizing their contributions.

Employee Ownership Plan: TD’s Employee Ownership Plan allows employees to purchase TD shares with the company matching 100% of the first $250 and 50% of additional contributions, up to a maximum of 3.5% of eligible earnings. This plan enhances employees’ financial security by giving them a stake in the company’s success, which can be an attractive retirement savings strategy(TD_Overview_of_Benefits…).

What is the process for TD employees to transition from their current roles to retirement, and what support does TD provide to ensure a smooth transition? Employees might look for details on informational sessions, retirement planning workshops, and personalized support that TD offers to facilitate this important life change.

Transitioning to Retirement: TD supports employees transitioning into retirement through informational resources, such as workshops and planning sessions. Personalized support is available to help employees navigate the various aspects of retirement planning, ensuring a smooth and well-supported transition from work to retirement(TD_Overview_of_Benefits…).

How can employees at TD keep informed about changes in retirement benefits and other important updates, and what channels are available for them to receive this information? This relates to the necessity of ongoing communication between TD and its employees about benefits.

Staying Informed About Benefits: TD communicates changes to retirement benefits through various channels, including internal communication platforms and regular updates from the human resources department. Employees can stay informed about important updates by accessing these resources and participating in informational sessions provided by TD(TD_Overview_of_Benefits…).

How can TD employees contact the company directly to learn more about their retirement options, and what personnel or resources are specifically dedicated to assisting them with retirement planning? Employees need clarity on whom to approach and what methods of communication (such as phone, email, or in-person consultations) they can use to get accurate information.

Contacting TD for Retirement Information: Employees can contact TD directly to learn more about their retirement options through the human resources department or financial advisory services. TD provides dedicated personnel and resources, such as in-person consultations and phone support, to assist employees in retirement planning(TD_Overview_of_Benefits…).

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

TD Synnex offers RSUs and stock options as part of their compensation packages.