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

Married and Retiring from Arconic? Discover 6 Essential Retirement Planning Strategies for Couples

Healthcare Provider Update: Healthcare Provider for Arconic Arconic, a leading provider of aluminum and aerospace products, collaborates with various insurance companies to offer healthcare benefits to its employees. The primary healthcare providers that partner with Arconic vary by location and include well-known insurers like UnitedHealthcare, Aetna, and Blue Cross Blue Shield, among others. Healthcare Cost Increases in 2026 In 2026, healthcare costs are expected to rise significantly, impacting employers and employees alike, including those at Arconic. The projected average increase in health benefit costs could reach nearly 8.5%, attributed to a perfect storm of higher medical expenses and the potential expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA). Many employers are responding by considering changes to plan designs that shift more costs to employees. This could lead to out-of-pocket premium increases that may exceed 75% for a large portion of the workforce, making it critical for companies like Arconic to strategize their healthcare offerings effectively to mitigate financial impacts on their employees. Click here to learn more

For this reason, Arconic employees should consider the Spousal IRA as a part of their retirement planning if the spouse is not working or has low income,” advises Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

The Retirement Group, a division of Wealth Enhancement Group, The Manager, Tyson Mavar, points out that Spousal IRAs are not fully exploited by the Arconic employees as a way to boost their retirement savings.

The Basics of Spousal IRAs: In this article, the eligibility, how to set it up, and the types (Roth and traditional) of Spousal IRAs that low-earning or non-working spouses can open.

Tax Implications and Benefits: Analysis of the contribution limits, tax benefits, and possible deductions related to both types of IRAs in order to boost retirement returns.

Strategic Retirement Planning: How Spousal IRAs can be included in the overall retirement planning, including examples and tips on how to maximize the benefits of the strategy.

This is important for the financial wellness of Arconic employees, especially for those who are married, and where one spouse has to stay at home to take care of the children or has a low income. The spousal IRA, a special type of IRA that enables a working spouse to save for the retirement of a non-working or low earning spouse, is a valuable but rarely used tool to increase retirement assets. These accounts can be Roth IRAs or regular IRAs, both of which have their own tax benefits.

Learn About Spousal IRAs

Spousal IRAs are traditional or Roth IRAs that are opened in the name of the spouse who earns less or does not work at all; they are not a separate kind of IRA. To be eligible, couples must file their taxes jointly and at least one spouse must have taxable income. It is quite easy to set up a Spousal IRA in the same way as one would set up a normal IRA. Due to this, many couples, including those from Arconic companies, fail to take advantage of the tax advantages and increased retirement savings that are available due to Spousal IRAs.

Contribution Caps and Their Effect on Taxes

Each spouse, before the age of 50, can contribute up to $7,000 annually to an IRA in 2024; spouses over 50 can contribute up to $8,000. These contributions are based on the taxable earned income of the couple as reported on their combined tax return.

Traditional IRAs: In most cases, contribution to the traditional IRA is deductible at the time of account opening and thus offers an immediate tax advantage especially in years of high income. It grows tax deferred and is withdrawn in the retirement year.

Roth IRAs: If certain requirements are met, qualifying distributions from a Roth IRA in retirement are tax-free. Contribution to the Roth IRA is not tax deductible. Some of these include the five-year rule which states that before the earnings can be withdrawn from the account freely, the first deposit must have been made at least five years ago.

It is important for the Arconic employees to know that the IRS rules on IRAs can be complicated. For example, in 2024, married couples can contribute to a Roth IRA if their modified adjusted gross income (MAGI) is $240,000 or less. In addition, the tax deductibility of traditional IRA contributions may be limited or prohibited if a spouse has an employer’s retirement plan.

Owner of Nested Financial & Tax Planning, Robin Snell says: “When it comes to deciding whether to open a Spousal IRA or not, tax issues are key. If you think you will need your money before retirement, then you may be better off saving in a taxable brokerage account because of the taxes and penalties on early withdrawals.”

Advantages for the Mind and Budget

The main advantage of Spousal IRAs is that they bring not only a financial benefit to retirement plans, but also a psychological one. “It often makes the non-working or low-income spouse feel good about the value they are bringing to the household and therefore, more inclined to be involved in the retirement savings process,” says Katherine Tierney, a certified financial planner and senior retirement strategist at Edward Jones.

This makes sure that the assets are in their name and help in the case of a divorce or widowhood to ensure that the non-working spouse has retirement money to rely on.

The Strength of Combining

This is because the power of compounding can make a Spousal IRA addition to a couple’s retirement plan make a big difference over time. “Although the extra savings may seem small, they have the potential to grow and make a big difference,” adds Cassandra Rupp, senior investment adviser at Vanguard.

This is illustrated by T. Rowe Price’s hypothetical example. Based on a Spousal IRA contribution of $7,000 per year and a 7% annual return, the earnings on the $140,000 in contributions over a 20 year period would be $167,056 with a final balance of $307,056.

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Roth or Traditional IRA: Which Is Better?

Whether to choose a Roth or a traditional IRA is dependent on the financial goals and current tax status of the couple. Traditional IRAs may be more advantageous in years of high income because they offer an immediate tax deduction. On the other hand, if a couple thinks that they will be in a higher tax bracket during retirement, then Roth IRAs can be used to take distributions without incurring any taxes on them.

It is also important to take into consideration the required minimum distributions (RMDs). While Roth IRAs are more flexible in retirement as they do not require RMDs during the owner’s lifetime, traditional IRAs start requiring RMDs at 73 (or 75 if you were born after Dec. 31, 2032).

Optimizing Advantages through Strategic Planning

Spousal IRAs can be very useful for Arconic employees if couples understand how to plan for them properly. This includes understanding the basics of income thresholds, contribution caps, and tax laws. A financial planner can provide the couple with specific guidance based on their circumstances.

Case Study: A Spousal IRA can be really helpful in a relationship where one partner earns a high income and the other is a housewife or a homemaker. Based on their choice between a Regular and a Roth IRA, both of them can enjoy tax-deferred or tax-free growth by contributing the annual maximum allowance.

In Summary

The Spousal IRA is a less common, but quite useful tool that can help married couples to improve their retirement savings. These accounts’ advantages and intricacies should be understood so that couples can make wise decisions in strengthening their retirement finances. As Katherine Tierney said, “It’s about taking the opportunities and helping both spouses to look to the future.”

Exploring the possibility of Spousal IRAs may hold significant financial benefits for Arconic employees seeking to boost their retirement funds, and therefore help them to feel more confident about their retirement. A lot of married couples who are near retirement age don’t realize how important it is to sync their IRA withdrawal strategies with their Social Security benefits. According to research by Boston College’s Center for Retirement Research, combining these two sources of income can dramatically increase retirement income (released January 2024). Thus, couples can manage their monthly benefits and work to maintain a more steady and higher lifetime income by deferring Social Security benefits until age 70 while drawing down IRAs. This minimizes the risk of running out of money before retirement.

Look at your retirement funds as a garden. A Spousal IRA is the extra set of hands that comes in and makes sure every square foot of that garden is planted to its fullest capacity to produce a crop. You can then choose how to grow your savings, like a gardener who knows how to distinguish between plants that do well in sunlight and those that can grow in the shade (Roth vs. traditional IRA). As you are well aware, a well-maintained garden yields rich fruits and flowers that can beautify and nourish for the years to come, and when you pay attention to this often forgotten area of your financial universe, you can build a future of two, protected and prosperous.

Sources:

1. Brandon, Emily. 'Spousal IRAs and Their Importance and Benefits: An Explanation.' U.S. News & World Report, March 2023 https://www.usnews.com/articles/spousal-iras-and-their-importance-and-benefits-an-explanation . Accessed February 3, 2025.

2. Smith, John. 'How to Get the Most from Your Retirement Accounts with Spousal IRAs.' Forbes June 2024 https://www.forbes.com/how-to-get-the-most-from-your-retirement-accounts-with-spousal-iras/ . Accessed February 3, 2025.

3. Johnson, Sarah. 'The Financial Power of Spousal IRAs in Retirement Planning.' Financial Times, September 2024 https://www.ft.com/content/the-financial-power-of-spousal-iras . Accessed February 3, 2025.

4. Davis, Robert. 'Spousal IRAs: A Key Tool for Retirement Security.' The Wall Street Journal, December 2024 https://www.wsj.com/articles/spousal-iras-a-key-tool-for-retirement-security . Accessed February 3, 2025.

5. Lee, Michelle. 'How Spousal IRAs Can Help You Be More Retirement Ready.' Bloomberg, November 2024 https://www.bloomberg.com/news/articles/how-spousal-iras-can-boost-retirement-readiness . Accessed February 3, 2025.

What retirement benefits and options are available to employees of Arconic Corporation under the Arconic Corp. Pension Plan A, and how do these benefits change based on factors such as age, service length, and retirement category? Employees of Arconic Corporation should understand their eligibility requirements for normal retirement, early retirement, and disability benefits as outlined in the company's pension plan documentation.

The Arconic Corp. Pension Plan A provides retirement benefits based on a formula that considers average earnings and service length, with normal retirement eligibility at age 65 and at least five years of service. Early retirement is available at age 55 with 10 years of service, with benefits reduced based on actuarial assumptions. Disability benefits are available after 10 years of service, and preretirement death benefits offer 50% of accrued benefits to surviving spouses(Arconic Corporation_ Ja…).

How does the frozen state of benefits and service accruals impact current and future retirees at Arconic Corporation? Employees should evaluate how the freeze, effective April 1, 2018, affects their retirement planning and what measures they can take based on their individual circumstances to optimize their retirement benefits.

The frozen state of benefits and service accruals, effective April 1, 2018, means no new service credits or compensation increases are factored into pension calculations for current employees. This freeze affects retirement planning as employees must now rely on frozen benefits and other savings plans to meet retirement needs. It’s important for employees to reassess their financial goals and consider additional investments to optimize retirement benefits(Arconic Corporation_ Ja…).

In what ways can Arconic Corporation employees ensure they meet the requirements for spousal benefits outlined in the pension plan, especially regarding preretirement and postretirement scenarios? Understanding the specifics of eligibility and benefits, such as the surviving spouse benefit calculations, is crucial for employees planning for retirement.

To ensure eligibility for spousal benefits, employees need to meet certain requirements. Preretirement surviving spouse benefits require at least five years of service, and postretirement spousal benefits reduce the participant’s monthly benefit by 5%, with 50% of the reduced amount paid to the spouse if the participant dies first. Employees should understand these provisions to plan for their family’s financial security in retirement(Arconic Corporation_ Ja…).

What are the implications of the actuarial assumptions used by Arconic Corporation in valuing its pension obligations, and how do these assumptions affect the funding of the retirement plan? Arconic Corporation employees should examine how changes in interest rates and mortality tables influence the company's ability to meet its pension obligations.

Actuarial assumptions used in Arconic Corp.’s pension valuations, such as interest rates and mortality tables, directly impact the funding of retirement plans. Changes in these assumptions can affect the pension plan’s obligations and the amount of required contributions, making it important for employees to understand how these factors influence the stability and sufficiency of their retirement benefits(Arconic Corporation_ Ja…).

Can you explain the process by which Arconic Corporation employees can appeal decisions related to their pension benefits, and what support does the company provide during this process? Understanding the proper channels for appeals and the types of documentation required can be vital for employees facing issues with their pension benefits.

Employees can appeal pension benefit decisions through Arconic Corporation’s formal process, which includes submitting an appeal with supporting documentation. The company provides guidelines on what documentation is required, and employees should follow these closely to ensure their case is reviewed thoroughly. The support provided can include detailed responses to clarify benefit calculations and decisions(Arconic Corporation_ Ja…).

What resources are available to Arconic Corporation employees to help them make informed decisions about their retirement benefits, and how can they access these resources efficiently? Employees should know where to find comprehensive materials and support services concerning their retirement plans.

Arconic Corporation offers various resources to assist employees in making informed decisions about their retirement benefits. Employees can access comprehensive plan documents, financial planning tools, and counseling services through the company’s HR department and retirement plan administrators to ensure they fully understand their options(Arconic Corporation_ Ja…).

How does the Arconic Corporation define "average earnings" for calculating retirement benefits, and what methodologies are in place to ensure accuracy in these calculations? Understanding the basis for average earnings will allow employees to better project their pension benefits and prepare for retirement.

Average earnings, used in calculating retirement benefits, are defined as the average of the five highest consecutive calendar years of compensation within the last ten years for most participants. For certain participants, different rules apply based on service and plan conditions. Employees can review their earnings history to ensure accurate calculations and projections for retirement planning(Arconic Corporation_ Ja…).

What criteria does Arconic Corporation use to determine eligibility for deferred vested benefits, and how can employees maximize their advantages in this area? Employees need to be aware of the vesting schedule and how to plan for potential career transitions while maintaining their benefits.

Eligibility for deferred vested benefits in Arconic Corporation’s plan requires five years of service, and benefits can commence as early as age 55, with reductions based on actuarial calculations. Employees should plan career transitions carefully to maximize their vested benefits, especially when considering leaving the company before retirement(Arconic Corporation_ Ja…).

How can Arconic Corporation employees prepare for the potential tax implications of their pension benefits upon retirement, especially in light of IRS regulations for 2024? Being informed about tax strategies related to retirement income can significantly enhance retirees' financial wellbeing.

Employees preparing for retirement should understand the tax implications of pension benefits, particularly in light of IRS regulations for 2024. Strategies such as tax deferral and proper timing of distributions can help minimize the tax burden on retirement income, significantly enhancing financial outcomes(Arconic Corporation_ Ja…).

What contact methods does Arconic Corporation provide for employees wishing to learn more about their pension plan details, and how can employees best utilize these methods to get their queries resolved? Understanding the effective ways to communicate with the company for assistance is key for employees navigating their retirement benefits.

Arconic Corporation provides multiple contact methods for pension-related inquiries, including direct access to HR representatives and pension plan administrators. Employees are encouraged to utilize these resources effectively by preparing questions in advance and keeping detailed records of their communications for follow-up and clarity(Arconic Corporation_ Ja…).

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

Arconic has announced a major restructuring plan that includes significant layoffs across its North American facilities. The restructuring is aimed at streamlining operations and reducing costs amid ongoing economic uncertainties. Additionally, Arconic is revising its pension and 401(k) benefits in response to shifting market conditions and regulatory changes.