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IDEX Employees: 401(k)s Could Be Replaced to Strengthen Social Security

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Healthcare Provider Update: IDEX provides medical, dental, and vision insurance through national and regional carriers. Employees benefit from prescription drug coverage, HSAs, FSAs, and company-paid life insurance. The company offers a 401(k) with matching and standalone contributions, tuition assistance, and wellness programs. Community involvement is encouraged through the IDEX Foundation 9. IDEX With ACA premiums projected to rise sharply, IDEXs competitive benefits and community-focused support help employees avoid the financial burden of marketplace plans. Click here to learn more

The importance of retirement planning cannot be overstated in a society where longevity is on the rise and financial independence in old age is more crucial than ever. For IDEX employees, the journey to a secure retirement is fraught with challenges such as escalating healthcare costs, increased living expenses, and persistent inflation. These financial pressures cast doubt on the sustainability of Social Security. Experts warn that without necessary reforms, Social Security might face significant deficits by 2035, potentially reducing future retiree benefits.


Economists Andrew Biggs and Alicia Munnell have sparked a lively debate with their suggestion to dissolve tax-sheltered savings vehicles like 401(k)s and IRAs to bolster Social Security. They question the effectiveness of current retirement policies and base their proposal on an analysis of retirement savings disparities across various income levels.

The widely recognized benefits of pre-tax contributions to retirement accounts, such as 401(k)s, include reduced taxable income and enhanced retirement savings. These features are especially beneficial for IDEX employees who enjoy employer-matched contributions and other incentives that boost their retirement reserves.

However, Munnell and Biggs argue that these popular plans do not significantly increase overall retirement savings. They cite U.S. Treasury data indicating that tax breaks for retirement plans cost the federal government between $185 billion and $189 billion in lost revenue in 2020 alone.  They also note that the wealthier segments of society disproportionately benefit from these tax incentives, suggesting that reallocating these funds could significantly narrow Social Security's budgetary gap and enhance the program's stability for all retirees.

Supporting this perspective are the Federal Reserve's 2022 figures, which reveal stark differences in retirement savings: the top 10% of earners average $1.29 million in retirement funds, whereas the median savings for middle-income individuals is just $87,000.  The decline of traditional pension plans over recent decades has exacerbated this issue, particularly affecting employees at smaller firms.


To address these inequalities, Munnell and Biggs propose several solutions, such as limiting tax advantages for high earners or adjusting contribution limits to more equitably distribute tax benefits across different income levels.

Currently, about 66 million Americans receive monthly Social Security payments. Funded primarily through tax revenues, the program is projected to deplete its trust funds by 2035, slightly earlier than previous estimates from the Congressional Research Service. The Committee for a Responsible Federal Budget cautions that insolvency could affect those nearing retirement within the next decade.

Proposals to sustain Social Security include abolishing tax-preferred retirement savings vehicles, along with other measures like increasing the retirement age, ceasing the taxation of Social Security benefits, and imposing higher taxes on affluent incomes.

As legislative discussions progress, especially in the context of upcoming elections, lawmakers will scrutinize the retirement system to determine steps necessary to ensure the financial security of millions of seniors. Despite political divisions in Congress, the path forward remains uncertain.

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It is crucial for IDEX employees concerned about their retirement resources to consult with a trustworthy financial or tax advisor. Keeping abreast of changes in retirement planning laws, such as those introduced by the SECURE 2.0 Act, is also vital for ensuring a stable and secure retirement and successful financial management.

Recent research by the Pew Research Center highlights that over 60% of individuals approaching retirement age lack confidence in their retirement investment strategies.  This underscores the importance of financial education initiatives, particularly in the ongoing debates about the future of Social Security and 401(k) plans. Enhancing understanding of retirement planning could help individuals make more informed decisions, regardless of potential legislative changes to Social Security or tax-advantaged retirement plans, ultimately leading to more financially secure retirements.

What type of retirement plan does IDEX offer to its employees?

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

How can IDEX employees enroll in the 401(k) plan?

IDEX employees can enroll in the 401(k) plan through the employee benefits portal or by contacting the HR department for assistance.

Does IDEX offer any matching contributions to the 401(k) plan?

Yes, IDEX provides matching contributions to the 401(k) plan, which helps employees save more for retirement.

What is the maximum contribution limit for IDEX employees participating in the 401(k) plan?

The maximum contribution limit for IDEX employees is set by the IRS and may change annually; employees should refer to the latest IRS guidelines for specific limits.

Are there any vesting requirements for the employer match in IDEX's 401(k) plan?

Yes, IDEX has a vesting schedule for employer matching contributions, which determines when employees fully own those contributions.

Can IDEX employees take loans against their 401(k) savings?

Yes, IDEX allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

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

IDEX offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

How often can IDEX employees change their 401(k) contribution amounts?

IDEX employees can change their 401(k) contribution amounts during designated enrollment periods or as specified in the plan documents.

What happens to my 401(k) if I leave IDEX?

If you leave IDEX, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the IDEX plan if eligible.

Is there a penalty for withdrawing funds from my IDEX 401(k) before retirement age?

Yes, there is typically a penalty for early withdrawals from the IDEX 401(k) plan, in addition to regular income taxes.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Name of Pension Plan: IDEX Corporation does not have a traditional defined benefit pension plan. Instead, they primarily offer defined contribution plans, including 401(k) plans. Years of Service and Age Qualification: IDEX Corporation generally does not offer a traditional pension plan; thus, there are no specific criteria for years of service or age for pension benefits. Pension Formula: Not applicable as IDEX Corporation focuses on 401(k) plans. 401(k) Plan Information Name of 401(k) Plan: IDEX Corporation’s 401(k) plan is generally referred to as the "IDEX 401(k) Plan." Who Qualifies: Employees typically become eligible for the 401(k) plan after completing a probationary period, which is often six months of service. Company Contribution: IDEX Corporation may offer a company match to employee contributions, though specific match percentages and contribution limits should be verified in the most recent plan documents.
IDEX Announces Restructuring Plan: In March 2024, IDEX announced a significant restructuring plan aimed at streamlining operations and reducing costs. The plan involves the closure of several non-core facilities and a reduction in workforce. This move is part of IDEX’s strategy to focus on its core business areas and improve operational efficiency. Source: Reuters
IDEX provided stock options (SO) and restricted stock units (RSU) for its employees as part of its compensation package in 2022. IDEX stock options are typically available to senior management and key employees based on performance and tenure. IDEX RSUs were granted to select employees as part of their long-term incentive plan.
Recent Changes: In 2023, IDEX increased their health benefits offerings by expanding telemedicine services and adding more preventive care benefits. They also adjusted their premium contributions to ease the financial burden on employees. Healthcare Trends: There has been a notable shift towards incorporating mental health resources and virtual care solutions into employee benefit programs.
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For more information you can reach the plan administrator for IDEX at , ; or by calling them at .

https://www.reuters.com/ https://www.businessinsider.com/ https://www.bloomberg.com/asia https://www.cnbc.com/world/?region=world https://www.benefitspro.com/?slreturn=20240817131439 http://www.401khelpcenter.com/ https://www.thelayoff.com/#google_vignette https://www.idexcorp.com/

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