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

Healthcare Provider Update: Healthcare Provider for Nordstrom For its healthcare needs, Nordstrom partners primarily with Aetna, Premera, and Kaiser Permanente to provide health insurance plans to its employees. Each of these insurers offers various options, including high-deductible plans accompanied by Health Savings Accounts (HSAs), allowing employees to manage their healthcare expenses more effectively. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for Nordstrom employees may see significant increases due to projected hikes in Affordable Care Act (ACA) premiums. Many states are anticipating rate increases of over 20%, with places like New York facing hikes exceeding 66%. The expiration of enhanced ACA subsidies will exacerbate these financial pressures, with projections suggesting that more than 22 million enrolled individuals could see their premiums surge by over 75%. This perfect storm of rising medical costs and subsidy losses will require employees to prepare for a substantial rise in their out-of-pocket healthcare expenses. Click here to learn more

For example, Nordstrom 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 Nordstrom 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 Nordstrom 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 Nordstrom employees.

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

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 Nordstrom 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, Nordstrom 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. 'Nordstrom 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 Nordstrom 401(k) plan?

   The Nordstrom 401(k) plan is a retirement savings plan that allows eligible employees to save for their future by contributing a portion of their earnings before taxes.

   How can I enroll in the Nordstrom 401(k) plan?

   You can enroll in the Nordstrom 401(k) plan by accessing the employee benefits portal or contacting the HR department for guidance on the enrollment process.

   What is the employer match for the Nordstrom 401(k) plan?

   Nordstrom offers a matching contribution to your 401(k) plan, which typically matches a percentage of your contributions up to a certain limit, helping you save more for retirement.

   When can I start contributing to the Nordstrom 401(k) plan?

   Eligible employees can start contributing to the Nordstrom 401(k) plan after completing a specified waiting period, usually within the first few months of employment.

   What types of investments are available in the Nordstrom 401(k) plan?

   The Nordstrom 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose investments that align with their retirement goals.

   Can I change my contribution rate for the Nordstrom 401(k) plan?

   Yes, you can change your contribution rate for the Nordstrom 401(k) plan at any time, subject to certain limits and guidelines set by the plan.

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

   Yes, Nordstrom has a vesting schedule for its matching contributions, meaning that you must work for the company for a certain period before you fully own the employer contributions.

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

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

   Can I take a loan from my Nordstrom 401(k) plan?

   Yes, Nordstrom allows employees to take loans from their 401(k) plan, subject to certain terms and conditions outlined in the plan documents.

   Are there hardship withdrawal options available in the Nordstrom 401(k) plan?

   Yes, Nordstrom offers hardship withdrawal options for employees facing financial difficulties, allowing access to funds under specific circumstances defined by the plan.

   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 Pension Plan: Nordstrom offers a defined benefit pension plan named the Nordstrom Retirement Plan. Years of Service and Age Qualification: Employees are eligible for the Nordstrom Retirement Plan after 5 years of service, and they must be at least 55 years old to start receiving benefits. Pension Formula: The pension benefits are calculated based on years of service and average salary. Specific formulas and details are outlined in the plan document. Name of 401(k) Plan: The 401(k) plan offered by Nordstrom is named the Nordstrom 401(k) Savings Plan. Qualification for 401(k) Plan: Employees are eligible to participate in the Nordstrom 401(k) Savings Plan from their first day of employment. Company Match: Nordstrom provides a company match up to a certain percentage of the employee’s contributions.
   Restructuring and Layoffs: In 2023, Nordstrom announced a restructuring plan aimed at streamlining its operations and improving profitability. This included a significant reduction in workforce, with several hundred employees being laid off as part of a broader strategy to reduce costs and enhance efficiency. The company stated that these changes were essential to adapt to shifting market conditions and consumer behavior. 2. Changes to Benefits and Pension Plans: In response to economic pressures, Nordstrom has made adjustments to its employee benefits and pension plans. The company has introduced changes to its 401(k) matching contributions, reducing the amount of company contributions to employee retirement accounts. Additionally, modifications were made to health benefits to control costs, affecting the coverage levels and out-of-pocket expenses for employees.**
   Nordstrom offers stock options and RSUs as part of its employee compensation package. These benefits are available to various levels of employees, often including executives and key staff members. Stock options at Nordstrom give employees the right to purchase shares at a set price, while RSUs are company shares granted to employees after meeting certain conditions.
   2022-2023: Nordstrom updated its healthcare plans to include enhanced mental health services and telehealth options. They also introduced flexible spending accounts (FSAs) and health savings accounts (HSAs) to provide more financial flexibility for employees. 2024: There have been announcements of new partnerships with healthcare providers to improve access to quality care and reduce costs for employees. Nordstrom is focusing on preventive care and wellness programs.