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

Healthcare Provider Update: Healthcare Provider: Cigna Cigna is a global health services provider that offers a broad range of health insurance plans, including individual and family plans, employer-sponsored group plans, disability insurance, and dental, behavioral health, and pharmacy management services. Known for its commitment to connecting customers with care, Cigna also emphasizes wellness and preventive health options in its offerings. Healthcare Cost Increases in 2026 As the healthcare landscape evolves, consumers can expect substantial increases in health insurance premiums for 2026. Recent forecasts indicate that Cigna will raise individual market premiums by an average of 29.4% in states like Colorado. This surge is attributed to a combination of factors, including rising medical costs, anticipated losses of federal premium subsidies, and aggressive rate hikes across the industry. If enhanced tax credits expire as expected, over 22 million ACA marketplace enrollees could face out-of-pocket premium hikes exceeding 75%, compounding the financial strain on American families seeking affordable coverage. Click here to learn more

For this reason, Cigna 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 Cigna 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 Cigna 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 Cigna 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 Cigna 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 Cigna 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 Cigna 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.

As an employee of CIGNA Corporation, what steps should you consider taking to understand the implications of the pension plan amendments established under recent legal interpretations? CIGNA Corporation has experienced significant changes in its pension plan, which resulted from the Amara case. In light of these changes, what should employees examine regarding their accrued benefits, and how might the historical context of these amendments impact their retirement planning?

Employees of CIGNA Corporation should thoroughly review their accrued benefits under the pension plan amendments following the Amara case, which reformed the employer's cash balance plan. It's essential to analyze how these changes affect the value of their pension benefits, especially for employees who joined the company before 1997. Understanding these amendments can significantly impact retirement planning(CIGNA Corporation_May 2…).

In what ways does the concept of ""wear-away"" as discussed in the context of CIGNA Corporation's pension plan amendments affect current employees nearing retirement? Understanding how this mechanism operates within the pension plan can help employees better strategize their retirement. Employees at CIGNA Corporation should analyze whether they could potentially experience delays in benefit accrual as a result of these changes and the legal principles that underpin them.

The "wear-away" concept, introduced in CIGNA’s pension plan amendments, can delay benefit accrual for employees nearing retirement. This mechanism often results in a period where no additional benefits are accrued, which could affect employees' retirement timing. Employees should carefully evaluate whether this delay might affect their pension expectations and strategize accordingly(CIGNA Corporation_May 2…).

How can CIGNA Corporation employees determine whether the current pension plan accurately reflects their rights under ERISA? With ongoing legal interpretations and potential reforms stemming from court rulings, employees need to assess how these rulings apply to the pension plan's amendments. This may require looking into the details of the summary plan descriptions and how to clarify their rights to future benefits.

To ensure that CIGNA’s pension plan reflects their rights under ERISA, employees should examine the summary plan descriptions and other relevant documents. Legal rulings like the Amara case can lead to reforms, so employees must clarify how these decisions impact their future benefits(CIGNA Corporation_May 2…).

What resources are available to CIGNA Corporation employees wishing to seek personalized advice regarding their specific retirement scenarios, particularly in light of changes brought about by the Amara case? Understanding the complexities of retirement benefits is crucial, and employees may benefit from tapping into CIGNAâ€™s human resource department or designated benefits counselors for guidance tailored to their circumstances.

Employees seeking personalized advice regarding retirement planning, especially in light of the Amara case, should consult CIGNA’s human resource department or designated benefits counselors. These professionals can provide guidance tailored to individual retirement scenarios, ensuring a clear understanding of pension and 401(k) options(CIGNA Corporation_May 2…).

How does the restructuring of the CIGNA Corporation's pension and 401(k) plans impact the overall retirement benefits landscape for employees who joined before and after the 1997 changes? Employees should look at the comparative advantages and disadvantages provided by both plans to make informed decisions regarding their retirement savings strategies and expected outcomes.

CIGNA employees who joined before and after 1997 should analyze the restructuring of the pension and 401(k) plans. The changes led to different retirement benefits, with cash balance plans affecting post-1997 employees. Comparing both plans’ advantages and disadvantages is crucial for making informed decisions about savings and retirement strategies(CIGNA Corporation_May 2…).

To what extent are CIGNA Corporation employees safeguarded against the financial impacts of fluctuations in interest rates in relation to their pension benefits? Employees should be aware of how the pension plan uses interest rate assumptions and their potential implications for the valuation of their pension benefits, particularly those who have been affected by the changes introduced in 1998.

Employees should understand how interest rate fluctuations impact the valuation of their pension benefits, especially those affected by the 1998 changes. Interest rate assumptions play a crucial role in determining the value of cash balance pensions, and employees must stay informed about these variables(CIGNA Corporation_May 2…).

What procedural steps must CIGNA Corporation employees follow to contest any discrepancies or misunderstandings about their pension benefits? Knowledge of CIGNA Corporation's dispute resolution process can empower employees to take action when they feel their rights have not been adequately represented or upheld, particularly in the wake of significant plan amendments.

To contest discrepancies in their pension benefits, CIGNA employees must follow the dispute resolution procedures laid out by the company. This process is especially important after the significant amendments resulting from the Amara case, as employees may need to defend their rights to accrued benefits(CIGNA Corporation_May 2…).

How has the legal environment surrounding pension plans, particularly through cases like the Amara lawsuit against CIGNA Corporation, influenced the benefits structure offered to employees? This question encourages employees to explore how changes at the judicial level redefine what retirement benefits can look like and the implications for their long-term financial security.

The Amara lawsuit influenced CIGNA’s pension structure by leading to a judicial reformation of the pension plan. Employees should explore how these legal decisions have reshaped the benefits landscape, as it directly affects their long-term financial planning and retirement security(CIGNA Corporation_May 2…).

What specific changes in eligibility criteria for early retirement benefits should current CIGNA Corporation employees be aware of, especially regarding the transition to the cash balance plan? Employees need to scrutinize the implications of these changes and how they may affect their decisions about early retirement and associated benefits.

Employees should be aware of changes to early retirement eligibility resulting from the transition to a cash balance plan. These adjustments, introduced after 1997, may alter the terms under which early retirement benefits are accessible, impacting decisions about retirement timing(CIGNA Corporation_May 2…).

How can CIGNA Corporation employees effectively reach out to the HR department or benefits specialists to get more information about their retirement options? Understanding the channels of communication established within the company for discussing benefits will be crucial for employees seeking clarity on their rights and the provisions of the pension plan following the recent amendments.

CIGNA employees can reach out to the HR department or benefits specialists for more information on their retirement options. These channels provide crucial insights into pension plan amendments and can clarify how the Amara case and other legal changes affect employees’ retirement benefits(CIGNA Corporation_May 2…).

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

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Cigna offers RSUs and stock options to certain employees. The RSUs vest over a specific period, encouraging retention.