Healthcare Provider Update: Healthcare Provider for eBay eBay utilizes the services of multiple healthcare providers for its employees, typically engaging in partnerships with large, well-known insurers to provide comprehensive health plans. While specific details about eBay's current healthcare provider may vary, they have previously been associated with providers like UnitedHealthcare and Anthem. Potential Healthcare Cost Increases in 2026 As eBay prepares for 2026, it faces potential challenges due to steep healthcare cost increases. Premiums for Affordable Care Act (ACA) marketplace plans are projected to surge significantly, with some states seeing hikes over 60%. Factors contributing to this surge include higher medical costs, the likely discontinuation of enhanced federal subsidies, and aggressive pricing strategies from major insurers. As a result, employees may experience a dramatic rise in out-of-pocket healthcare expenses, with estimates suggesting increases could exceed 75% for many enrollees. This scenario underscores the importance for employers like eBay to strategize effectively in managing healthcare benefits amidst a turbulent market. Click here to learn more
'eBay employees must be aware that while ERISA-qualified plans provide significant protection from creditors, non-ERISA accounts like IRAs are more vulnerable, and it's crucial to understand state-specific laws to ensure full asset security as you approach retirement,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.
'As retirement approaches, eBay employees should consider not only the strength of their ERISA-qualified plans but also the potential vulnerabilities of non-ERISA accounts, and seek guidance from legal and financial experts to ensure their assets are fully protected,' advises Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
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The protection of retirement savings under ERISA-qualified plans.
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The limitations of ERISA protection, including potential risks from creditors.
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The role of state laws in protecting non-ERISA retirement accounts like IRAs.
For employees at eBay, an important issue is the security of retirement savings, especially when employees approach the retirement age or are retired. It is generally assumed that all retirement assets are protected from creditors. Nevertheless, the extent to which these assets are protected differs greatly depending on the type of retirement plan and the laws of the state. In this article, we explore the specifics of asset protection.
Plans Covered by ERISA: A Stronghold Against Creditors
Most of the retirement plans that meet the eligibility requirements of the Employee Retirement Income Security Act (ERISA) are generally safe. Such ERISA-qualified plans are also usually safe from the reach of creditors in the event of bankruptcy or civil suits. Importantly, this protection is maintained even if the company sponsoring the plan goes bankrupt. These assets are usually out of the reach of personal creditors.
To meet the ERISA requirements, a retirement plan must be offered by an employer or an employee organization and must meet certain federal requirements regarding membership reporting, funding, and vesting. Typical ERISA-qualified plans include profit-sharing plans, pensions, deferred compensation plans, and 401(k)s.
Furthermore, ERISA applies to some employee health and welfare benefits, such as:
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Hospital, surgical, and medical coverage through Health Maintenance Organization (HMO) plans.
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Health care Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs).
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Dental and vision plans.
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Prescription drug programs.
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Disability insurance.
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Specific welfare benefit plans under sections 419(a)(f)(6) and 419(e).
The anti-alienation clause in these plans prohibits the assignment of benefits and thus keeps the assets beyond the reach of most creditors.
Weaknesses of ERISA-Qualified Plans
Although they are very strong, ERISA plans are not foolproof. They can be subject to claims by:
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A former spouse for child support or divorce settlements, with a Qualified Domestic Relations Order (QDRO).
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The Internal Revenue Service (IRS) for any unpaid federal income taxes.
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The federal government in cases involving fines and penalties for crimes.
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Creditors in the event that a plan participant breaches the terms of the plan.
The State of Non-ERISA Plans
The protection of retirement accounts that are not covered by ERISA, such as traditional and Roth IRAs, is not uniform. Some 403(b) plans offered by government or religious organizations may also not be ERISA plans.
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BAPCPA provides some protection for IRA funds in bankruptcy, but such funds are not protected by ERISA.
State Laws and IRA Security
The protection of IRAs and other non-ERISA plans against creditors can vary greatly by state. Some offer little protection, while others offer almost none. It is imperative to know these nuances in order to manage the risk of potential creditor claims. eBay employees are encouraged to seek the advice of experienced local attorneys in order to navigate these complex legal situations.
Conclusion
The legality of protecting retirement funds from creditors depends on the type of retirement account, state laws, and certain exemptions. Although most employer-sponsored retirement plans are relatively safe, the legal framework is complex, and it is advisable to seek legal advice early to maximize the protection of retirement assets.
Sources:
Mavar, Tyson. The Retirement Group, a Division of Wealth Enhancement Group . Interview. January 2025.
'ERISA: A Guide to Employee Retirement Income Security Act.' U.S. Department of Labor , 2024, www.dol.gov/general/topic/retirement/erisa . Accessed 31 Jan. 2025.
'How Bankruptcy Affects Retirement Accounts.' National Bankruptcy Forum , 2023, www.nationalbankruptcyforum.com/affects-of-bankruptcy-on-retirement-accounts . Accessed 31 Jan. 2025.
'State Laws and IRA Protection.' Retirement Law Journal , vol. 12, no. 4, 2024, pp. 47-52.
'Understanding Qualified Domestic Relations Orders (QDROs).' Internal Revenue Service , 2023, www.irs.gov/retirement-plans/plan-participant-employee/understanding-qualified-domestic-relations-orders . Accessed 31 Jan. 2025.
What type of retirement savings plan does eBay offer to its employees?
eBay offers a 401(k) retirement savings plan to its employees.
Does eBay provide a company match for contributions made to the 401(k) plan?
Yes, eBay provides a company match for employee contributions to the 401(k) plan, subject to certain limits.
What is the maximum employee contribution limit for eBay's 401(k) plan?
The maximum employee contribution limit for eBay's 401(k) plan is in accordance with IRS guidelines, which may change annually.
Can employees at eBay choose between traditional and Roth 401(k) contributions?
Yes, employees at eBay can choose to make either traditional pre-tax contributions or Roth after-tax contributions to their 401(k) plans.
When can eBay employees enroll in the 401(k) plan?
eBay employees can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.
How often can eBay employees change their 401(k) contribution amounts?
eBay employees can change their 401(k) contribution amounts at any time, subject to the plan's guidelines.
What investment options are available in eBay's 401(k) plan?
eBay's 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.
Does eBay allow for loans against the 401(k) balance?
Yes, eBay allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.
What happens to an employee's 401(k) balance if they leave eBay?
If an employee leaves eBay, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the eBay plan if eligible.
Are there any fees associated with eBay's 401(k) plan?
Yes, eBay's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.