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

Healthcare Provider Update: Healthcare Provider for ODP: ODP, also known as Office Depot, typically provides healthcare benefits through various national insurers. For 2026, major players like UnitedHealthcare, Anthem, and Cigna are critical as potential providers, particularly in light of the anticipated increases in healthcare costs affecting employees. Brief Overview of Potential Healthcare Cost Increases in 2026: In 2026, ODP employees may face significant healthcare cost increases as a result of soaring insurance premiums within the ACA marketplace and an overall rise in medical expenses. Reports indicate that some states could see premium hikes of over 60%, substantially affecting out-of-pocket costs for many individuals. Furthermore, the expiration of enhanced federal subsidies could lead to a staggering 75% increase in net premiums for the majority of ACA enrollees, emphasizing the need for employees to proactively evaluate their benefit options and financial strategies to manage these rising costs effectively. Click here to learn more

For example, ODP 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 ODP 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 ODP 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 ODP employees.

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

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 ODP 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, ODP 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. 'ODP 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 ODP 401(k) Savings Plan?

   The ODP 401(k) Savings Plan is a retirement savings plan that allows eligible employees to save for retirement through pre-tax and/or Roth contributions.

   How can I enroll in ODP's 401(k) Savings Plan?

   You can enroll in ODP's 401(k) Savings Plan by accessing the enrollment portal provided by ODP or by contacting the HR department for assistance.

   What types of contributions can I make to ODP's 401(k) Savings Plan?

   Employees can make pre-tax contributions, Roth contributions, and after-tax contributions to ODP's 401(k) Savings Plan.

   Does ODP match employee contributions to the 401(k) Savings Plan?

   Yes, ODP offers a matching contribution to eligible employees who participate in the 401(k) Savings Plan, helping to boost their retirement savings.

   What is the vesting schedule for ODP's matching contributions?

   The vesting schedule for ODP's matching contributions typically follows a graded vesting schedule, which means employees gradually earn ownership of the employer's contributions over time.

   When can I start withdrawing from my ODP 401(k) Savings Plan?

   Employees can begin to withdraw from their ODP 401(k) Savings Plan upon reaching the age of 59½, or under certain circumstances such as financial hardship or termination of employment.

   Are there any penalties for early withdrawal from ODP's 401(k) Savings Plan?

   Yes, if you withdraw funds from ODP's 401(k) Savings Plan before age 59½, you may incur a 10% early withdrawal penalty, in addition to regular income taxes.

   Can I take a loan against my ODP 401(k) Savings Plan?

   Yes, ODP allows employees to take loans against their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan documents.

   How often can I change my contribution amount to ODP's 401(k) Savings Plan?

   Employees can change their contribution amounts to ODP's 401(k) Savings Plan at any time, typically through the online portal or by contacting HR.

   What investment options are available in ODP's 401(k) Savings Plan?

   ODP's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.