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

Healthcare Provider Update: Etsy provides health insurance through UnitedHealthcare, covering 100% of premiums for employees and dependents. Additional benefits include dental (Delta Dental), vision, mental health support, and wellness programs 1. As ACA premiums rise and subsidies expire, Etsys fully covered plans offer a strong buffer against market volatility, making employer-sponsored coverage significantly more cost-effective Click here to learn more

For example, Etsy 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 Etsy 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 Etsy 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 Etsy employees.

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

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 Etsy 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, Etsy 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. 'Etsy 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 plan does Etsy offer to its employees?

   Etsy offers a 401(k) retirement savings plan to help employees save for their future.

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

   Yes, Etsy provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

   What is the eligibility requirement for Etsy employees to participate in the 401(k) plan?

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

   Can Etsy employees choose how to invest their 401(k) contributions?

   Yes, Etsy employees can choose from a variety of investment options within the 401(k) plan to align with their retirement goals.

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

   Etsy has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own those contributions.

   How can Etsy employees access their 401(k) account information?

   Etsy employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.

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

   Yes, there may be administrative fees associated with Etsy's 401(k) plan, which are typically disclosed in the plan documents.

   Can Etsy employees take loans from their 401(k) accounts?

   Yes, Etsy allows employees to take loans from their 401(k) accounts under certain conditions, as outlined in the plan guidelines.

   What happens to an Etsy employee's 401(k) if they leave the company?

   If an Etsy employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash it out, or leave it in the Etsy plan if allowed.

   Does Etsy provide financial education resources related to the 401(k) plan?

   Yes, Etsy offers financial education resources and workshops to help employees make informed decisions about their 401(k) savings.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Etsy offers its employees a comprehensive retirement plan, primarily centered around a 401(k) with competitive employer matching contributions. Employees are eligible for the 401(k) plan after meeting specific criteria, such as one year of service and being at least 21 years old. The 401(k) plan at Etsy allows participants to make tax-deferred contributions, up to a maximum set by the IRS. For the year 2024, this limit is $23,000, with an additional catch-up contribution of $7,500 for employees aged 50 and over​ (Investopedia)​ (CapitalGroup NACG). The plan also includes various investment options, including mutual funds and stocks, which employees can choose from depending on their risk tolerance and retirement goals. Etsy's 401(k) plan emphasizes the importance of consistent employee participation and is structured to align with federal guidelines like ERISA, which protects retirement assets. Although Etsy does not offer a traditional pension plan, its 401(k) plan is designed to be flexible and supportive of long-term retirement savings, with employer contributions enhancing the growth potential of the plan​
   Restructuring Layoffs: Etsy announced in December 2023 that it would be laying off 11% of its workforce, amounting to approximately 225 employees. This move comes as the company faces a challenging macroeconomic environment and increased competition. The layoffs are expected to cost Etsy between $25 million and $30 million, primarily due to severance payments, employee benefits, and related expenses. The restructuring is aimed at achieving greater operational efficiencies and cost savings, especially in the wake of flat gross merchandise sales since 2021. Additionally, Etsy has made significant changes to its executive team, including the departure of its Chief Marketing Officer and Chief Human Resources Officer, with their responsibilities being redistributed among existing executives.
   2022: Etsy employees were eligible for stock options and RSUs as part of their compensation package. Specific details about the vesting schedules and performance criteria are detailed in the company's annual report (Source: Etsy Annual Report 2022, Page 45). 2023: Etsy continued offering stock options and RSUs to its employees. The grants were generally provided based on seniority and role within the company (Source: Etsy Proxy Statement 2023, Page 38). 2024: In 2024, Etsy maintained its stock option and RSU programs. Employees in management and critical roles were prioritized for these benefits
   1. Official Etsy Website Etsy Careers Page: Often provides information about employee benefits, including health benefits. Etsy Employee Handbook: If available, it may have specific details on healthcare benefits. 2. Reliable Sources and News Outlets Glassdoor: Employees often share details about their benefits here. Indeed: Offers company reviews and sometimes specific details on benefits. LinkedIn: Check for company updates or employee discussions on benefits. Forbes: May provide news or articles about employee benefits. Business Insider: Could offer insights into employee benefits and company news.