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

Healthcare Provider Update: For Parsons, the primary healthcare provider is the UnitedHealthcare plan, particularly significant as it is one of the largest insurers in the country, alongside others that may service Parsons employees depending on their locations. As we move into 2026, healthcare costs are expected to escalate dramatically due to a combination of factors affecting the Affordable Care Act (ACA) marketplace. Reports anticipate substantial premium increases, with some states seeing hikes of over 60%. This surge is primarily driven by deteriorating medical cost trends and the looming expiration of enhanced federal premium subsidies, which could result in out-of-pocket premium payments rising by an average of over 75% for approximately 92% of marketplace enrollees - a situation that poses significant financial challenges for individuals relying on ACA coverage. Thus, Parsons employees are advised to consider these developments carefully as they plan their healthcare for the upcoming year. Click here to learn more

For example, Parsons 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 Parsons 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 Parsons 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 Parsons employees.

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

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 Parsons 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, Parsons 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. 'Parsons 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 401(k) plan offered by Parsons?

   The 401(k) plan at Parsons is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them build a nest egg for retirement.

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

   Parsons offers a company match on employee contributions to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

   When can employees at Parsons enroll in the 401(k) plan?

   Employees at Parsons can enroll in the 401(k) plan during their initial onboarding process or during the annual open enrollment period.

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

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

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

   Yes, employees at Parsons may be able to take loans against their 401(k) savings, subject to the plan's terms and conditions.

   What is the vesting schedule for Parsons' 401(k) plan?

   The vesting schedule for Parsons' 401(k) plan determines how long employees must work at the company before they fully own the employer's contributions, which may vary based on tenure.

   How can employees at Parsons access their 401(k) account information?

   Employees at Parsons can access their 401(k) account information through the company's designated retirement plan website or mobile app.

   What happens to the 401(k) plan if an employee leaves Parsons?

   If an employee leaves Parsons, they have several options regarding their 401(k) plan, including rolling it over to a new employer's plan or an IRA, or cashing it out, subject to taxes and penalties.

   Does Parsons offer any financial education resources related to the 401(k) plan?

   Yes, Parsons provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment choices.

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

   Yes, there may be administrative fees and investment fees associated with Parsons' 401(k) plan, which are disclosed in the plan's documentation.