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

Healthcare Provider Update: MasTec, a leading provider in construction and engineering services, primarily utilizes Aetna as its healthcare provider for employee health plans. Looking ahead to 2026, MasTec employees may face significant healthcare cost increases. With expected sharp hikes in health insurance premiums, especially in states like New York where proposals suggest increases of up to 66%, employees should be prepared. The termination of enhanced federal ACA premium subsidies could exacerbate the situation, potentially leading to a staggering 75% increase in out-of-pocket costs for many. As employers navigate these challenges, it is likely that benefit adjustments, including higher deductibles and out-of-pocket maximums, may become commonplace to offset rising expenses. Click here to learn more

For example, MasTec 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 MasTec 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 MasTec 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 MasTec employees.

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

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 MasTec 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, MasTec 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. 'MasTec 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 MasTec offer to its employees?

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

   Does MasTec provide a company match for contributions made to the 401(k) plan?

   Yes, MasTec provides a company match on employee contributions to the 401(k) plan, subject to specific limits.

   At what age can MasTec employees start participating in the 401(k) plan?

   MasTec employees can typically start participating in the 401(k) plan as soon as they meet eligibility requirements, usually upon hire.

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

   MasTec's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.

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

   MasTec employees can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.

   Is there a minimum contribution amount required for MasTec's 401(k) plan?

   MasTec may have a minimum contribution amount, which employees should verify in the plan documents or by contacting HR.

   Can MasTec employees change their contribution percentage at any time?

   Yes, MasTec employees can change their contribution percentage at any time, subject to the plan's rules and guidelines.

   What happens to MasTec employees' 401(k) savings if they leave the company?

   If MasTec employees leave the company, they can roll over their 401(k) savings to another retirement account or withdraw the funds, subject to tax implications.

   Does MasTec offer loans against the 401(k) plan?

   Yes, MasTec's 401(k) plan may allow employees to take loans against their savings, subject to specific terms and conditions.

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

   Yes, there may be administrative fees and investment-related fees associated with MasTec's 401(k) plan, which employees should review 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.
   Name of Plan: MasTec, Inc. Pension Plan Years of Service and Age Qualification: Employees are generally eligible for the pension plan after completing 5 years of service and reaching the age of 65. For early retirement, employees can start receiving benefits at age 55 with 10 years of service. Pension Formula: The pension benefit is calculated based on a formula that considers the number of years of service and average salary over a specified period, usually the highest-paid years. Name of Plan: MasTec, Inc. 401(k) Plan Eligibility: Employees are eligible to participate in the 401(k) plan upon completion of 30 days of service. Company Contributions: MasTec offers a matching contribution up to a certain percentage of the employee’s contribution.
   Restructuring and Layoffs: MasTec announced a restructuring plan in early 2024 aimed at streamlining operations and reducing overhead costs. This plan included a reduction of around 8% of their workforce, particularly targeting roles that overlap in their newly consolidated departments. The company cited the need to adapt to changing market conditions and improve efficiency as primary reasons for this move. It is crucial to monitor these developments due to the current economic climate, which affects labor markets and corporate stability. Restructuring can impact not just the employees but also investors and the broader economy. Benefit Changes: Alongside the layoffs, MasTec has revised its employee benefits structure. The company has introduced a more flexible benefits package, including adjustments to health insurance premiums and modifications to retirement plan contributions. These changes are in response to evolving market demands and cost-management strategies. Staying informed about these adjustments is essential given the broader economic and political context, as such changes can influence employee satisfaction and retention, and reflect broader trends in corporate benefit management.
   MasTec provides stock options and RSUs to employees as part of their compensation package. Stock options are often granted to executives and key employees, while RSUs are typically awarded based on performance and tenure. In 2022, MasTec's stock options and RSUs aimed to align employee interests with company performance.
   Employee Benefits Overview: MasTec provides a comprehensive benefits package which typically includes medical, dental, and vision coverage, among other options. Healthcare Plans: They offer multiple health plan options including PPO (Preferred Provider Organization) and HDHP (High Deductible Health Plan) with HSA (Health Savings Account) compatibility. Wellness Programs: MasTec includes wellness programs and resources to support employees' physical and mental health.