What Macy's Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider Information for Macy's: Macy's, as a large retailer, typically provides employee health insurance through various national carriers. Among the prominent providers, UnitedHealthcare has been the primary healthcare partner for Macy's, offering a range of health plans that include medical, dental, and vision coverage for employees. Healthcare Cost Increases in 2026: As Macy's faces healthcare cost pressures in 2026, significant increases in insurance premiums are anticipated due to the expiration of enhanced federal subsidies under the Affordable Care Act (ACA). Some states could see hikes exceeding 60%, with as many as 22 million marketplace enrollees potentially experiencing more than a 75% rise in out-of-pocket costs. Contributing factors include rising medical costs driven by inflation, labor shortages, and high pharmaceutical prices, further straining budgets for employers like Macy's. This perfect storm of escalating costs and diminished subsidies places additional financial pressure on both the company and its employees, necessitating strategic planning moving forward. Click here to learn more

For example, Macy's 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 Macy's 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 Macy's 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 Macy's employees.

Simply for political, economic, and social reasons, many Macy's 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 Macy's.

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

   The Macy's 401(k) plan is a retirement savings plan that allows eligible employees to save for their future by contributing a portion of their paycheck on a pre-tax or after-tax basis.

   How does Macy's match contributions to the 401(k) plan?

   Macy's offers a matching contribution to the 401(k) plan, which means that for every dollar you contribute, Macy's will match a certain percentage, up to a specified limit.

   Who is eligible to participate in Macy's 401(k) plan?

   Generally, all full-time and part-time employees of Macy's who meet specific age and service requirements are eligible to participate in the 401(k) plan.

   Can I change my contribution amount to the Macy's 401(k) plan?

   Yes, employees can change their contribution amounts to the Macy's 401(k) plan at any time, subject to plan rules.

   What investment options are available in the Macy's 401(k) plan?

   The Macy'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 retirement savings.

   How do I enroll in the Macy's 401(k) plan?

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

   Is there a vesting schedule for Macy's matching contributions?

   Yes, Macy's has a vesting schedule for matching contributions, which means that employees must work for a certain period before they fully own the matched funds.

   Can I take a loan from my Macy's 401(k) plan?

   Yes, employees may have the option to take a loan from their Macy's 401(k) plan, subject to specific terms and conditions outlined in the plan.

   What happens to my Macy's 401(k) if I leave the company?

   If you leave Macy's, you can choose to roll over your 401(k) balance into another retirement account, cash it out (subject to taxes and penalties), or leave it in the Macy's plan if allowed.

   How can I check my Macy's 401(k) balance?

   Employees can check their Macy's 401(k) balance by logging into the benefits portal or by contacting the plan administrator.