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

Healthcare Provider Update: DexCom offers its employees a comprehensive health insurance package that includes medical, dental, and vision coverage. Employees benefit from Health Savings Accounts (HSAs) with company contributions, telemedicine access, and mental health support. Additional perks include paid time off, 401(k) matching, and professional development programs 4. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

For example, DexCom 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 DexCom 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 DexCom 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 DexCom employees.

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

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 DexCom 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, DexCom 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. 'DexCom 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 retirement savings options does DexCom offer to its employees?

   DexCom offers a 401(k) savings plan that allows employees to save for retirement through pre-tax and Roth contributions.

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

   Yes, DexCom provides a matching contribution to the 401(k) plan, helping employees to maximize their retirement savings.

   How can employees at DexCom enroll in the 401(k) plan?

   Employees at DexCom can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

   What is the vesting schedule for DexCom's 401(k) matching contributions?

   DexCom has a vesting schedule that typically requires employees to complete a certain number of years of service before they fully own the matching contributions.

   Can DexCom employees take loans against their 401(k) savings?

   Yes, DexCom allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

   What investment options are available in the DexCom 401(k) plan?

   The DexCom 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

   Is there a minimum contribution requirement for the DexCom 401(k) plan?

   Yes, DexCom has a minimum contribution requirement for employees who wish to participate in the 401(k) plan, which is outlined in the plan documents.

   How often can DexCom employees change their 401(k) contribution amounts?

   DexCom employees can change their 401(k) contribution amounts at specified intervals, typically during open enrollment or at any time as allowed by the plan.

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

   If you leave DexCom, you have several options for your 401(k), including rolling it over to another retirement account or leaving it in the DexCom plan, subject to certain conditions.

   Are there any fees associated with the DexCom 401(k) plan?

   Yes, there may be fees associated with the DexCom 401(k) plan, which are disclosed in the plan documents and can vary based on investment choices.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   DexCom offers a 401(k) plan but does not currently provide a defined pension plan for its employees. The DexCom 401(k) plan allows employees to contribute a portion of their salary, and the company matches a percentage of these contributions. As of 2022, the plan's total retirement assets were over $234 million, with 5,430 participants. The plan is accessible to all full-time employees aged 21 and over, with the option to start contributing immediately upon employment. For specific terminology and detailed plan descriptions, DexCom uses standard retirement-related terms like "vesting," "deferral," and "matching contributions." The plan focuses on providing long-term savings opportunities, emphasizing employee participation and the benefits of employer matching.
   Restructuring and Layoffs: In early 2024, DexCom announced a restructuring plan aimed at optimizing operations and reducing costs. The company is expected to lay off approximately 5% of its workforce as part of this initiative. This move is a strategic response to the current economic uncertainties and is designed to enhance efficiency and profitability amidst fluctuating market conditions. The importance of addressing this news is heightened by the current economic environment, which is marked by inflationary pressures and changing investment dynamics. Understanding such developments is crucial for assessing the potential impact on employee benefits and job security. Company Benefits and Pension Changes: Alongside the restructuring, DexCom has also made adjustments to its benefits and pension plans. The company has modified its 401(k) match policy, reducing the employer contribution rate from 5% to 3%. Additionally, there have been changes to the pension plan, including a freeze on new pension accruals. These changes reflect broader trends in the industry where companies are reassessing their benefits structures in response to financial pressures. It is essential to monitor these developments as they affect employee retirement planning and long-term financial stability, especially in light of current tax and investment environments.
   DexCom provided stock options to executives and key employees, with a four-year vesting schedule. RSUs were granted to align interests with shareholders, typically vesting over three years.
   DexCom Careers Page: DexCom's official careers page provides a detailed overview of their employee benefits, including health insurance plans, wellness programs, and other related benefits. Health Insurance Plans and Benefits: Medical Insurance: DexCom offers various medical plans, including PPO (Preferred Provider Organization) and HMO (Health Maintenance Organization) options. Coverage often includes preventive care, emergency services, and specialist visits. Dental and Vision Insurance: Comprehensive dental and vision insurance plans are typically provided, covering routine check-ups, major dental work, and vision correction. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs): Employees can use HSAs or FSAs to manage out-of-pocket expenses with tax advantages. Telehealth Services: Access to virtual consultations and telemedicine is commonly available.