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Essential 2024 Tax Break Insights for Mondelez International Employees: What You Need to Know

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Healthcare Provider Update: Healthcare Provider for Mondelez International Mondelez International primarily utilizes Aetna as their healthcare provider for employee health insurance coverage. Potential Healthcare Cost Increases for Mondelez International in 2026 Looking ahead to 2026, Mondelez International employees may face significant increases in healthcare costs. Factors contributing to this rise include anticipated premium hikes in the Affordable Care Act (ACA) marketplace, with some states expecting increases over 60%. Additionally, a substantial number of employers, including Mondelez, are projected to pass on more healthcare costs to employees by raising deductibles and out-of-pocket maximums. As a result, employees must prepare for the possibility of sharp out-of-pocket expenses, necessitating careful planning and awareness of benefit changes to mitigate potential financial strains. Click here to learn more

The corporate landscape has seen significant upheavals with job losses spanning various industries, touching even the most robust workforces. In 2023, the technology sector alone saw over 260,000 job terminations, with major players like Google, Amazon, and Microsoft at the forefront. Similarly, Citigroup reported about 20,000 job cuts, equating to roughly 10% of its workforce, with comparable reductions at UPS, Macy's, and even Sports Illustrated.


For Mondelez International employees, these unsettling times bring crucial financial decisions to the forefront, particularly concerning the management of 401(k) plans, a critical component of many workers' life savings. In this climate, financial advisors are more essential than ever, aiding employees in understanding their options amid new fiduciary regulations from the Department of Labor, emphasizing the importance of informed asset transfers to individual retirement accounts (IRAs).

One often-overlooked strategy is the net unrealized appreciation (NUA) tax deduction, particularly valuable for employees holding Mondelez International stock in their 401(k)s. As stock values potentially increase, this equity can represent a significant part of retirement plans and offer substantial tax savings if managed correctly.

Under the NUA tax benefit, Mondelez International company shares within a 401(k) can be part of a qualified lump-sum distribution. At distribution, the stock's appreciation is taxed at the favorable long-term capital gains rate, rather than the higher regular income tax rate—this applies even if the stock was held for less than a year. However, any appreciation after the distribution and before sale is taxed as ordinary income unless held for at least one year.


The NUA benefit is contingent on specific conditions. Firstly, a qualifying event like a layoff, retirement, or other separation from the company must trigger it. Other qualifying events include death, disability (only for self-employed), and reaching age 59½. Secondly, the distribution must occur within one calendar year following the triggering event as part of a qualified lump-sum distribution.

Consider the case of John, a 62-year-old who was recently laid off from his tech company. John had $1 million in his 401(k), $800,000 of which was in company stock, originally purchased for $100,000. The market value of these shares had significantly appreciated. Opting for a lump-sum distribution, John transferred the $800,000 in company stock to a brokerage account and rolled the remaining $200,000 into an IRA tax-free. He paid ordinary income tax only on the original $100,000 cost basis, while subsequent sales of the stock were taxed at lower capital gains rates.

This strategic approach not only leverages a significant tax advantage but also reduces the volume of assets rolled over to an IRA, impacting future required minimum distributions (RMDs). Financial advisors need to assess the potential for stock appreciation within 401(k) plans to determine the prudence of such distributions.

As we progress through the early months of the year, advisors should prepare for potential NUA transactions, requiring careful execution. Understanding these financial strategies can transform the adverse event of a layoff into a substantial tax advantage.

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Mondelez International employees and those affected by job cuts should consider resources like Ed Slott's 2-Day IRA Workshop for deeper insights into retirement planning and IRA management. For more information and registration, visit IRAhelp.com. Proactive financial planning can significantly mitigate the impact of job losses and optimize retirement outcomes.

For individuals aged 60 and older, the 2024 tax year brings an increased standard deduction, providing an additional tax benefit for retirees, especially those aged 65 and above. The increased standard deduction amounts to $1,750 for single filers and $1,400 for married couples filing jointly, allowing for more disposable income in retirement. This information is crucial for effective budget planning and is based on recent IRS updates.

Navigating the financial aftermath of layoffs with adept 401(k) management and taking advantage of the NUA tax deduction is akin to a skilled captain steering a ship through challenging waters. Just as the captain utilizes natural elements for a smoother, faster voyage, retirees can adeptly navigate their financial landscape, minimizing tax liabilities while maximizing retirement savings. A sound financial strategy can give you confidence in your retirement plans, much like a well-navigated maritime journey helps ensure a safe and swift passage.

What is the 401(k) plan offered by Mondelez International?

The 401(k) plan at Mondelez International is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can employees enroll in Mondelez International's 401(k) plan?

Employees can enroll in Mondelez International's 401(k) plan by accessing the employee benefits portal or contacting the HR department for guidance.

Does Mondelez International offer a company match for the 401(k) contributions?

Yes, Mondelez International offers a company match for employee contributions to the 401(k) plan, helping to boost retirement savings.

What are the eligibility requirements for Mondelez International's 401(k) plan?

To be eligible for Mondelez International's 401(k) plan, employees typically need to meet certain criteria, such as being a full-time employee and completing a specific period of service.

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

Mondelez International's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

Can employees take loans against their 401(k) at Mondelez International?

Yes, Mondelez International allows employees to take loans against their 401(k) balance under certain conditions, providing flexibility for financial needs.

What is the vesting schedule for Mondelez International's 401(k) plan?

Mondelez International has a vesting schedule that determines how much of the company match employees can keep if they leave the company, typically based on years of service.

How can employees change their contribution percentage to Mondelez International's 401(k) plan?

Employees can change their contribution percentage to Mondelez International's 401(k) plan by logging into the benefits portal or contacting HR for assistance.

When can employees start withdrawing from their Mondelez International 401(k) plan?

Employees can generally start withdrawing from their Mondelez International 401(k) plan without penalty at age 59½, subject to specific plan rules.

Does Mondelez International provide financial education regarding the 401(k) plan?

Yes, Mondelez International offers resources and financial education programs to help employees understand their 401(k) options and make informed decisions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Plan Name: Mondelez International Pension Plan Years of Service & Age Qualification: Employees typically need to have at least 5 years of service and must be at least 55 years old to qualify for pension benefits. Pension Formula: The pension benefit is calculated based on years of service and final average salary. The formula used is generally a percentage of the average salary over a specified period multiplied by the number of years of service. Plan Name: Mondelez International 401(k) Retirement Savings Plan Who Qualifies: All full-time employees are eligible to participate in the 401(k) plan. 401(k) Plan Details: Mondelez International offers a standard 401(k) plan with matching contributions. Employees can contribute a percentage of their salary up to the maximum allowed by law. Mondelez typically matches a portion of employee contributions.
Restructuring and Layoffs: In early 2023, Mondelez International announced a global restructuring plan aiming to streamline operations and improve efficiency. This plan included a reduction of approximately 3% of its workforce globally. The restructuring is part of the company's strategy to adapt to shifting market demands and operational challenges. It’s essential for employees and investors to stay informed about these changes due to their potential impact on job security and the company's financial health. Benefit and Pension Changes: Mondelez has also been updating its employee benefit programs and pension plans. Recent reports indicate changes to the company's 401(k) matching contributions and modifications to retirement benefits. The adjustments are designed to enhance financial stability and align with broader industry trends. Given the current economic conditions and evolving tax regulations, understanding these changes is vital for planning personal finances and retirement strategies.
Mondelez International typically offers stock options and RSUs to its employees as part of its compensation package. In 2022, Mondelez International provided stock options and RSUs to a select group of employees, including executives and senior management. The stock options allowed employees to purchase company stock at a set price, while RSUs granted shares that vest over time. Source: Mondelez International Annual Report 2022, Page 45.
Health Benefits Overview: Mondelez International offers a comprehensive benefits package that includes medical, dental, and vision insurance. Employees can choose from various plans based on their needs. Recent Updates: As of 2024, Mondelez International has updated their health benefits to include enhanced mental health support, expanded telemedicine options, and a focus on preventive care.
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For more information you can reach the plan administrator for Mondelez International at , ; or by calling them at .

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