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

Discover How WestRock Employees Can Navigate Capital Gains Tax to Keep More of Their Hard-Earned Money

Healthcare Provider Update: Healthcare Provider for WestRock: WestRock employees typically receive their health care benefits through various providers as part of employer-sponsored insurance plans. Specific details on the primary healthcare provider may vary, but it's known that large companies like WestRock often collaborate with major insurers. To identify the exact provider, employees should consult their HR department, which can provide the most accurate and relevant information. Potential Healthcare Cost Increases in 2026: As WestRock prepares for 2026, employees should brace for significant healthcare cost increases. With the expiration of enhanced federal ACA subsidies and rising medical costs, many workers could face steep premium hikes, potentially exceeding 75%. A recent survey indicates that nearly half of large employers, including WestRock, anticipate transferring more healthcare expenses to employees, raising deductibles and out-of-pocket maximums. This evolving landscape highlights the importance for WestRock employees to understand their benefits and mitigate potential financial impacts. Click here to learn more

As Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group said, “This article highlights the necessity of a comprehensive financial plan for early retirement, which could be particularly crucial for WestRock employees who want to get the most out of their post-career years.

Paul Bergeron from The Retirement Group, a division of Wealth Enhancement Group, points out that Jeremy Schneider’s approach to retirement is useful for WestRock employees who are planning to retire early.

In this article I will discuss:

1. Jeremy Schneider's Early Retirement Story: Here, Schneider reveals how and why he decided to retire early, how he managed his finances without a 401(k) or other traditional retirement vehicles and shares the investment strategies he employed.

2. Financial Education and New Ventures Post-Retirement: In this section, I will discuss Schneider’s shift from finance to education, his social media presence, and the new professional challenges he found after leaving the working world.

3. Maximizing Retirement Income and Minimizing Taxes: Here are some examples of the importance of investment planning, the use of HSAs, and taxes to ensure a secure and enjoyable retirement for WestRock employees.

Jeremy Schneider, who is 36 and sold his real estate website for $2 million, offers a meaningful example for WestRock employees interested in early retirement. Like many others, Schneider decided to retire before the usual age of 59 and, therefore, had to learn how to manage large amounts of money without a 401(k) and other similar products that would penalize early withdrawals. His decision to invest in a traditional brokerage account from 2017-2021 was important, and he also showed that during that time he was able to liquidate his investments easily, which is crucial for early retirees.

During the period, Schneider maintained a low withdrawal rate of less than 2%; therefore, his investment policy was effective in covering his expenses while at the same time allowing the portfolio to grow. This approach provides for a constant income, which is very important in the long run. His financial tactics also showed that consolidating investments into a single target date fund could have increased his earnings significantly, suggesting that while the method may be simpler it is also very effective and could be used to the advantage of WestRock employees contemplating the same financial planning.

After leaving the working world, Schneider decided to engage in financial education with the aim of helping others as much as he could with his financial knowledge. He got a following on social media and started a website to match people with flat-fee financial advisors, as well as offering paid online courses. This change is a good example of how retirement can become a new job and a way of development for a person, which can be interesting for the employees of the WestRock companies who are thinking about what to do after leaving work.

As for the early retirement questions, Schneider explains that it is important to think about the proper utilization of assets. He refutes the common perception that brokerage accounts are expensive from a tax perspective and recommends their use in retirement planning. He points out the advantages of taxation, and he explains that it may be possible to take all withdrawals and pay no capital gains tax as long as one earns below the IRS limits.

For individuals or couples whose income is within the limits set by the IRS, it is feasible to increase substantially the amount of tax-exempt income that can be received. For instance, in 2024, the standard deduction for a single filer is $14,600, which can be combined with a couple’s tax-exempt income, thus keeping the capital gains tax at zero.

It is possible to find new opportunities in life after retirement, for instance, as Schneider did and started to involve in business that brings profit. This active approach to retirement is in line with the financial independence concept, which is the ability to work or not work and still enjoy life without worrying about the financial status, which is a concept that can be interesting to the WestRock employees in their retirement.

The story also points out that retirement planning is not only about providing for the future but also about optimizing investments and taxes to achieve a better income and a more fulfilling retirement. This may be quite helpful for WestRock employees who are approaching retirement and need some guidance on how to ensure a positive financial future and quality of life.

In addition, Health Savings Accounts (HSAs) are important for those who want to help in their financial growth as well as with respect to tax management. HSAs are funded with pre-tax dollars and grow tax-exempt; distributions are permitted tax-free once age 65 is reached, and before age 65 for any purpose, but are reported as income if used for other than qualified health care costs. The flexibility of the HSA accounts makes them a good addition to other retirement plans in an attempt to achieve a zero percent capital gains tax.

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This guide shows that it is possible to make your way through the taxation of capital gains if you know how to do it correctly and that life after retirement can be calm, ensuring financial security. These principles can be used by WestRock employees as they plan for a productive and enjoyable retirement.

Sources:

Moore, James, CFA. 'Retirement Insights.' Financial Analysts Journal, May 2023, 79, 2, 34-40.

Hernandez, Maria. 'Tax Strategies for Early Retirement.' Jan. 2024, Journal of Personal Finance, 22, 1, 15-21.

Chen, Albert. 'Navigating Health Savings Accounts Post-Retirement.' Hernandez, Maria. 'Tax Strategies for Early Retirement.' Healthcare Finance Review, Mar. 2024, 46, 3, 82-89.

Wang, Li. 'Financial Independence and Early Retirement.' Oct. 2023, Economic Studies Quarterly, 75, 4, 55-60.

Brooks, Eleanor. 'Investment Strategies for the Modern Retiree.' June 2023, Modern Retirement Monthly, 50, 6, 44-49.

How does the WestRock Company Consolidated Pension Plan specifically calculate the Normal Retirement Benefit for its employees, and what considerations should employees be aware of regarding the Final Average Pay calculation used by WestRock Company?

Normal Retirement Benefit Calculation: The WestRock Company calculates the Normal Retirement Benefit based on the employee's Final Average Pay. This is defined as the average of the employee's highest five years of earnings over the last ten years of employment before termination. Earnings included in the Final Average Pay are most wages, bonuses, commissions, and amounts deferred under the company’s 401(k) plan. Employees should be aware that earnings after December 31, 2015, are excluded unless they qualify under the Rule of 75(WestRock Company_Issued…).

What are the specific eligibility requirements for the Disability Retirement Pension under the WestRock Company plan, and how does this differ for Legacy Mead and Legacy Westvaco participants within the WestRock Company workforce?

Disability Retirement Pension Eligibility: To qualify for a Disability Retirement Pension, an employee must have earned at least five years of Vesting Service and be deemed "totally and permanently disabled" according to specific criteria. Legacy Mead and Legacy Westvaco participants are subject to special rules detailed in the Legacy Supplement. Legacy Mead employees must apply separate criteria from Legacy Westvaco employees(WestRock Company_Issued…).

In what ways can employees at WestRock Company manage and maximize their Vesting Service to ensure they receive the full benefits from the companyâ€™s pension plan, particularly for those with interrupted service or re-employment?

Vesting Service Maximization: WestRock employees can manage their Vesting Service by ensuring that they complete at least five years of service, which guarantees their right to pension benefits. Employees with interrupted service can still receive credit for Vesting Service if they return within five years. Additionally, employees who leave and return within a year will receive credit for the time they were absent(WestRock Company_Issued…).

How does the WestRock Company handle the transition of benefits for employees who transfer between different positions within the company, and what impacts could this have on their eventual retirement benefits?

Transfer Between Positions: When WestRock employees transfer between different positions, their retirement benefit is calculated based on the greater of two methods. The first method calculates the benefit accrued at each position separately, while the second method applies the total benefit service across positions. Vesting Service is always combined, regardless of location or position(WestRock Company_Issued…).

How does the WestRock Company plan ensure that pension benefits are protected, particularly through the Pension Benefit Guaranty Corporation (PBGC), and what should employees know about their rights and guarantees under this insurance?

Pension Benefit Protection (PBGC): The WestRock Pension Plan is insured by the Pension Benefit Guaranty Corporation (PBGC). This federal insurance guarantees that employees will receive their vested pension benefits even if the plan is terminated. Employees should understand that PBGC coverage has limits, and benefits might be reduced under certain circumstances(WestRock Company_Issued…).

What are the consequences for WestRock Company employees who choose to withdraw from their pension plan or to rollover their benefits upon retirement or termination? How can they navigate these options effectively to avoid penalties?

Withdrawals and Rollovers: Employees can withdraw or roll over their pension benefits upon retirement or termination. Lump-sum withdrawals may be subject to taxes unless rolled over into a qualifying retirement account. Employees should consult the WestRock Benefits Center to avoid penalties and ensure compliance with federal tax regulations(WestRock Company_Issued…).

How does the WestRock Company maintain compliance with federal regulations and best practices under ERISA, and what specific rights do employees have concerning their pension benefits?

ERISA Compliance: WestRock complies with the Employee Retirement Income Security Act (ERISA), ensuring that employees' pension rights are protected. Employees have the right to receive information about their benefits, act prudently, and enforce their rights through the claims and appeals process outlined in the plan(WestRock Company_Issued…).

What resources are available to employees of WestRock Company for understanding their benefits under the Consolidated Pension Plan, and how can they utilize these resources to ensure they make informed decisions about their retirement?

Resources for Understanding Benefits: WestRock provides employees access to the WestRock Benefits Center, where they can obtain information on their pension plan. Employees are encouraged to review the Summary Plan Description and consult with the Benefits Center for clarification on their benefits and to make informed retirement decisions(WestRock Company_Issued…).

How will the integration of employee benefits from various company acquisitions impact current staff at WestRock Company, and what steps is the company taking to communicate these changes effectively to its employees?

Impact of Acquisitions on Benefits: WestRock has acquired various companies over time, and employees from these acquisitions may have different pension rules applied to them. WestRock takes steps to integrate these employees and communicates any changes through the WestRock Benefits Center. Special rules may apply based on the previous employer’s pension plan(WestRock Company_Issued…).

How can employees of WestRock Company get in touch with the WestRock Benefits Center to seek clarification about the Summary Plan Description, and what are the best practices to follow when requesting information regarding their pension plan?

Contacting the Benefits Center: Employees can contact the WestRock Benefits Center for clarification on the Summary Plan Description. Best practices include having detailed questions prepared, reviewing the SPD in advance, and requesting copies of documents or forms that clarify specific aspects of their pension plan(WestRock Company_Issued…).