What Carter's Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider for Carter's Carter's, a well-known children's apparel company, primarily utilizes Anthem Blue Cross Blue Shield as its healthcare provider. This partnership allows employees to access a range of health benefits including medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 As 2026 approaches, employees at Carter's should brace for significant rises in healthcare costs. A reported trend indicates that many large employers, including Carter's, are likely to increase deductibles and out-of-pocket maximums in response to soaring healthcare expenses, heavily influenced by anticipated double-digit premium hikes in the ACA marketplace. Without the renewal of enhanced federal subsidies, workers could see their premiums spike by over 75%, compounding the financial burden already tied to rising medical costs driven by inflation and escalating prescription drug prices. Preparing for these adjustments now by reviewing benefits and optimizing healthcare strategies will be crucial for mitigating these potential increases. Click here to learn more

For example, Carter's employees planning on moving overseas need to have a clear plan of action to overcome the challenges of acquiring residency and citizenship in another country,' according to Brent Wolf from The Retirement Group at Wealth Enhancement Group.

Kevin Landis of The Retirement Group, a division of Wealth Enhancement Group, explains why detailed planning is crucial for Carter's employees who intend to retire abroad. However,

In this article we will discuss:

1. The complexity of obtaining residency or citizenship abroad: Discussing the legal, financial, and cultural issues that are involved in moving overseas for Carter's employees.

2. The necessity of professional advice and planning: Emphasizing the importance of thorough preparation and professional advice to ensure a smooth transition to retiring abroad.

3. Tax advantages and financial planning for retirees: Explaining the possible tax advantages that are available through international treaties and the strategic financial planning that needs to be done for the retirement savings of Carter's employees.

Simply for political, economic, and social reasons, many Carter's employees are looking to secure citizenship or residency in other countries if the United States is not as attractive as it once was. But, getting residency in another country and, perhaps, citizenship is not as simple as just buying a plane ticket and setting an itinerary.

This is because there are many processes that may take a few years to accomplish at times. The more people who are considering these options, the more difficult these choices become. It is therefore crucial to identify the legal, financial, and cultural implications that arise in order to ensure a smooth transition to a new home overseas before embarking on this journey.

Without a proper plan and some professional advice, it can be quite a challenge to switch gears and retire during your tenure at Carter's.

The impact of potential tax advantages when retiring abroad will definitely affect your financial position. Many countries, including the United States, have tax treaties that prevent income from being taxed twice. For instance, pensioners are attracted to Portugal by the Non-Habitual Resident (NHR) regime that offers special tax concessions for up to 10 years.

You can enhance your retirement benefits by taking advantage of these perks and seeking the advice of a tax specialist. The IRS notes that because these treaties can be very different it is important to research and seek the advice of a professional (IRS, 2023). These advantages must be used by Carter's employees to enhance their retirement.

Expatriating and retiring is a process of planning a long and beautiful road trip. Just as you would not travel without a map, a well-maintained car, and knowledge of your location, Carter's employees who are retiring abroad need to plan carefully.

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Step by step, you will be guided on how to make your transition to your new home easier, from explaining cultural differences and tax benefits to helping you understand the legal and financial environment. Just as a road trip opens new views and experiences, retirement abroad presents a world of possibilities for a happy and comfortable retirement.

Sources:

1. The Warren Street Wealth Advisors Team. 'Carter's and Large Company Employees.' Warren Street Wealth Advisors, 3 Feb. 2025, Accessed from warrenstreetwealth.com.

2. 'US Taxes for Americans Retiring Abroad in 2025.' MyExpatTaxes, 20 Nov. 2024, Accessed 3 Feb. 2025 from myexpattaxes.com.

3. Toms, Mary, CPA, MBA, MS. 'US Tax Implications of Retiring Abroad: What You Need to Know.' PBMares, 10 Dec. 2024, Accessed 3 Feb. 2025 from pbmares.com.

4. 'Financial Planning for US Expatriates.' The Expat Financial, Accessed 3 Feb. 2025 from expatfinancial.com.

5. 'Retiring Overseas: What You Need to Know About Your US Taxes and Financial Planning.' Expat CPA, Accessed 3 Feb. 2025 from expatcpa.com.

   What type of retirement savings plan does Carter's offer to its employees?

   Carter's offers a 401(k) retirement savings plan to its employees.

   Is participation in the 401(k) plan at Carter's mandatory?

   Participation in Carter's 401(k) plan is voluntary for employees.

   What is the eligibility requirement for Carter's 401(k) plan?

   Employees at Carter's are eligible to participate in the 401(k) plan after completing a specified period of employment, typically outlined in the employee handbook.

   Does Carter's match employee contributions to the 401(k) plan?

   Yes, Carter's offers a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

   How can employees at Carter's enroll in the 401(k) plan?

   Employees can enroll in the Carter's 401(k) plan by completing the enrollment process through the company's benefits portal.

   What types of investment options are available in Carter's 401(k) plan?

   Carter's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

   Can employees change their contribution percentage to the 401(k) plan at Carter's?

   Yes, employees at Carter's can change their contribution percentage to the 401(k) plan at any time, subject to plan rules.

   What is the vesting schedule for employer contributions in Carter's 401(k) plan?

   The vesting schedule for employer contributions in Carter's 401(k) plan is detailed in the plan documents and typically requires employees to work for a certain number of years before fully owning the employer match.

   When can employees at Carter's withdraw funds from their 401(k) accounts?

   Employees can withdraw funds from their Carter's 401(k) accounts upon reaching retirement age, or under certain circumstances such as financial hardship, as defined by the plan.

   Does Carter's provide educational resources for employees regarding their 401(k) plan?

   Yes, Carter's provides educational resources and workshops to help employees understand their 401(k) plan options and investment strategies.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   401(k) Plan Adjustments: Carter's has updated its 401(k) plan to increase the company match from 4% to 5% of employee contributions. This adjustment aims to enhance employee retention and attract new talent amidst a competitive labor market. With ongoing economic uncertainties, this change helps employees save more for retirement and provides a stronger financial cushion.
   Layoffs and Restructuring: In early 2023, Carter's announced a reduction in workforce as part of its restructuring plan aimed at streamlining operations and reducing costs. The company indicated that the layoffs were necessary to improve operational efficiency and align with shifting market demands.
   Stock Options: Stock options typically give employees the right to purchase company shares at a set price after a certain period. Carter's stock options are generally offered to senior executives and key employees as part of their compensation package. RSUs: Restricted Stock Units are company shares given to employees as part of their compensation, but with restrictions that typically lapse over time. RSUs at Carter's are usually provided to a broader group of employees including managers and senior-level staff. Specific Information by Year
   Recent Employee Healthcare News: Summarize any recent news affecting employee healthcare at Carter's. Research Sources Official Website: Look for health benefits information in the company's careers section or employee resources area. News Websites: Search for recent articles or press releases related to Carter's employee health benefits. Industry Reports: Check industry-specific reports or news platforms for relevant updates. HR and Benefits Sites: Explore HR or benefits management websites for detailed insights. Financial and Business News: Look into financial news platforms for any relevant updates on employee benefits. Steps to Perform the Search Official Website: Visit Carter’s official website and navigate to the careers or employee benefits section. Google Search: Perform a Google search with keywords such as "Carter's health benefits 2022 2023 2024" and review the top results. Industry-Specific Sources: Check HR and benefits management websites such as SHRM.org or BenefitsPro.com. Business News Sites: Explore business news sites like Bloomberg or Reuters for relevant updates.