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

Healthcare Provider Update: Healthcare Provider for KBR KBR, a company known for its engineering and construction services, provides health insurance through its partnerships with major health insurers. As of now, KBR employees have access to healthcare coverage options primarily through UnitedHealthcare, which is one of the largest health insurers in the United States. This ensures that employees can receive comprehensive health services, including preventive care and specialty treatments. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are projected to surge significantly, exacerbated by a challenging blend of factors. Many states are staring down potential increases in health insurance premiums beyond 60%, particularly influenced by the expiration of enhanced federal premium subsidies that could cause out-of-pocket costs to skyrocket by over 75% for most ACA marketplace enrollees. Coupled with rising medical expenses driven by inflation, the anticipated premium hikes reflect a perfect storm for consumers, increasing the financial burden on both individuals and families during a critical period. Insurers report significant revenue growth but also face mounting pressures that may further distress access to affordable healthcare coverage. Click here to learn more

For example, KBR 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 KBR 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 KBR 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 KBR employees.

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

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 KBR 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, KBR 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. 'KBR 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 KBR's 401(k) plan?

   KBR's 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

   How does KBR match employee contributions to the 401(k) plan?

   KBR offers a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

   When can employees at KBR start contributing to the 401(k) plan?

   Employees at KBR can start contributing to the 401(k) plan after completing their initial eligibility period, which is usually outlined in the employee handbook.

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

   KBR's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

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

   Yes, KBR allows employees to take loans against their 401(k) savings, subject to certain conditions and limits set by the plan.

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

   If you leave KBR, you can choose to roll over your 401(k) balance to another retirement account, cash out your balance, or leave it in the KBR plan if allowed.

   Is there a vesting schedule for KBR's 401(k) matching contributions?

   Yes, KBR has a vesting schedule for matching contributions, meaning employees must work for a certain period to fully own the matched funds.

   How can KBR employees change their contribution percentage to the 401(k) plan?

   KBR employees can change their contribution percentage by accessing their account online or by contacting the HR department for assistance.

   Does KBR provide educational resources for employees regarding their 401(k) plan?

   Yes, KBR provides educational resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

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

   Yes, KBR's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   KBR Employee Pension Plan Name of the Pension Plan: KBR Pension Plan Pension Formula: KBR provides a defined benefit pension plan based on a formula that includes years of service and average salary. Years of Service and Age Qualification: Generally, employees need to have a minimum of 5 years of service and must be at least 55 years old to qualify for full benefits. Name of the 401(k) Plan: KBR 401(k) Savings Plan Eligibility: Employees are eligible to participate in the KBR 401(k) Savings Plan after completing 30 days of service
   Restructuring and Layoffs: In 2023, KBR announced a significant restructuring plan aimed at streamlining its operations. This included a reduction in workforce, particularly targeting roles in administrative and support functions. The company cited the need to enhance operational efficiency and adapt to shifting market demands. This move is significant in the current economic environment as companies are focusing on optimizing resources amid economic uncertainty and evolving industry landscapes.
   Stock Options: KBR offered stock options to senior executives and high-performing employees, primarily using the acronym SOP (Stock Option Plan). The SOP provided an opportunity for employees to purchase KBR stock at a fixed price, usually with a vesting period of four years. Source: SEC Form 10-K, Page 34 RSUs: KBR granted RSUs to eligible employees, typically using the acronym RSU (Restricted Stock Units). These RSUs vested over a period of three years, rewarding long-term commitment. Source: Yahoo Finance, KBR Annual Report, Page 20
   Health Benefits: KBR provides a comprehensive benefits package including medical, dental, and vision coverage. They offer various plans including PPOs, HSAs, and FSAs. Acronyms and Terms: Common terms include PPO (Preferred Provider Organization), HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program), and EPO (Exclusive Provider Organization).