What Carvana Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Carvana's healthcare provider is Aetna. As we look ahead to 2026, significant increases in healthcare costs are anticipated, primarily due to the expiration of enhanced premium subsidies under the Affordable Care Act (ACA). Without these subsidies, many enrollees could see their out-of-pocket premium payments rise by over 75%, exacerbating the financial burden on consumers. Additionally, insurers are projecting higher medical costs due to inflation and increased utilization of healthcare services, leading to average premium hikes that could reach 20% or more across various states. This combination of factors signals a challenging landscape for Carvana's employees and many other Americans seeking affordable health coverage. Click here to learn more

For example, Carvana 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 Carvana 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 Carvana 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 Carvana employees.

Simply for political, economic, and social reasons, many Carvana 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 Carvana.

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 Carvana 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, Carvana 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. 'Carvana 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 is the 401(k) plan offered by Carvana?

   Carvana offers a 401(k) plan that allows employees to save for retirement through pre-tax and/or Roth contributions, providing a tax-advantaged way to build savings.

   Does Carvana match employee contributions to the 401(k) plan?

   Yes, Carvana provides a company match on employee contributions to the 401(k) plan, helping employees increase their retirement savings.

   How can I enroll in Carvana's 401(k) plan?

   Employees can enroll in Carvana's 401(k) plan through the employee benefits portal or by contacting the HR department for assistance.

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

   Carvana's 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles to suit various risk tolerances.

   Can I change my contribution percentage to Carvana's 401(k) plan at any time?

   Yes, employees can change their contribution percentage to Carvana's 401(k) plan at any time, typically through the employee benefits portal.

   What is the vesting schedule for Carvana's 401(k) company match?

   Carvana has a specific vesting schedule for the company match, which means that employees must work for a certain period before they fully own the matched contributions.

   Are there any fees associated with Carvana's 401(k) plan?

   Yes, Carvana's 401(k) plan may have administrative and investment fees, which are disclosed in the plan documents provided to employees.

   How often can I review my 401(k) account with Carvana?

   Employees can review their 401(k) account with Carvana at any time through the plan's online portal, allowing for regular monitoring of investments.

   What happens to my Carvana 401(k) if I leave the company?

   If you leave Carvana, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Carvana plan if permitted.

   Does Carvana allow loans against the 401(k) plan?

   Yes, Carvana's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Carvana's 401(k) Plan: Carvana offers a traditional 401(k) plan, allowing employees to contribute a portion of their salary to a retirement savings account, which grows tax-deferred until withdrawal. In 2024, employees can contribute up to $23,000, with an additional catch-up contribution of $7,500 for those aged 50 or older, totaling $30,500. The company likely offers a match on employee contributions, though specific match details were not found. The plan includes a variety of investment options, typically mutual funds or ETFs, chosen by the employee from a list curated by the plan administrator​ (Annuity.org)​ (MissionSquare). Pension Plan: Carvana does not offer a traditional defined benefit pension plan as part of its retirement benefits package. Instead, they focus on the 401(k) plan, which aligns with the shift in many modern companies from defined benefit plans to defined contribution plans. The emphasis is on employee-driven retirement savings with employer support, rather than a fixed monthly pension payout​
   Restructuring Layoffs (2023-2024): In response to economic pressures, Carvana has been undergoing significant restructuring efforts, including layoffs and reduction in work hours for many employees. These layoffs began in 2022 with the cutting of approximately 4,000 jobs and have continued into 2023 and 2024. The company has been discreetly reducing its workforce to combat financial losses, driven by increased inflation and rising interest rates. Carvana's stock has also suffered, with a 95% drop over the past year, further complicating its financial stability. Addressing these layoffs is crucial because they reflect broader economic challenges that could affect both current employees and investors, particularly in an unstable economic environment​ (markets.businessinsider.com). Benefit, Pension, and 401(k) Changes (2023-2024): Carvana has also been exploring changes to its employee benefits, particularly in terms of retiree health benefits. The company, like many others, is navigating the legal landscape concerning the reduction or elimination of post-employment health care benefits. For current and former employees, understanding these changes is essential as federal law does not protect retiree health benefits unless explicitly promised by the company. Such shifts in benefit structures underscore the importance of staying informed, especially given the volatile economic and political environment that impacts retirement planning
   Carvana offers a comprehensive health benefits package including medical, dental, and vision insurance. They also provide access to telemedicine services and an Employee Assistance Program. There were updates to their benefits plan in 2023 to include more mental health resources and enhanced telehealth options.