What Freddie Mac Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Freddie Mac offers a comprehensive benefits package that includes flexible healthcare plans such as POS, HMO, and high-deductible options with HSAs. Employees also receive dental, vision, life, and disability insurance, along with access to an on-site wellness center and fitness facilities. Additional perks include student loan repayment assistance, adoption and fertility benefits, legal services, commuter subsidies, and generous paid time off. The company contributes to 401(k) plans with matching and automatic contributions, and supports employee well-being through EAPs and backup care services 1. Freddie Mac 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, Freddie Mac 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 Freddie Mac 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 Freddie Mac 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 Freddie Mac employees.

Simply for political, economic, and social reasons, many Freddie Mac 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 Freddie Mac.

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 Freddie Mac 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, Freddie Mac 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. 'Freddie Mac 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 Freddie Mac offer to its employees?

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

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

   Yes, Freddie Mac provides a matching contribution to employee 401(k) contributions, up to a certain percentage.

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

   Employees at Freddie Mac are typically eligible to participate in the 401(k) plan after completing a specified period of service.

   Can Freddie Mac employees make pre-tax contributions to their 401(k) plan?

   Yes, Freddie Mac employees can make pre-tax contributions to their 401(k) plan, which can reduce their taxable income.

   Does Freddie Mac allow after-tax contributions to the 401(k) plan?

   Yes, Freddie Mac allows employees to make after-tax contributions to their 401(k) plan.

   How often can Freddie Mac employees change their contribution amounts to the 401(k) plan?

   Freddie Mac employees can change their contribution amounts to the 401(k) plan during designated enrollment periods or as specified by the plan rules.

   What investment options are available in Freddie Mac's 401(k) plan?

   Freddie Mac's 401(k) plan offers a variety of investment options, including mutual funds and other investment vehicles.

   Is there a vesting schedule for Freddie Mac's matching contributions?

   Yes, Freddie Mac has a vesting schedule for matching contributions, which determines when employees fully own those contributions.

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

   Freddie Mac employees can access their 401(k) account information through the company's designated retirement plan website or portal.

   What happens to a Freddie Mac employee's 401(k) account if they leave the company?

   If a Freddie Mac employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, withdraw the funds, or leave the account with Freddie Mac, subject to plan rules.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Freddie Mac is a government-sponsored enterprise that provides liquidity, stability, and affordability to the U.S. housing market. It supports the housing finance system through its various programs.
   Freddie Mac provides RSUs to certain employees. The RSUs vest over a specific period, supporting employee retention.