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

Healthcare Provider Update: ResMed provides health insurance coverage to its U.S.-based employees through comprehensive medical plans, along with dental, vision, and life insurance. Employees benefit from flexible work arrangements, retirement plans, and an employee stock purchase program. The company also offers mental health support and wellness initiatives to promote work-life balance. ResMed Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

For example, ResMed 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 ResMed 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 ResMed 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 ResMed employees.

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

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 ResMed 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, ResMed 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. 'ResMed 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 ResMed?

   The 401(k) plan at ResMed is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

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

   ResMed offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.

   When can I enroll in the ResMed 401(k) plan?

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

   What types of investment options are available in ResMed's 401(k) plan?

   ResMed's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

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

   Yes, ResMed has a vesting schedule for matching contributions, meaning employees must work for a certain period before they fully own the matched funds.

   Can I take a loan against my 401(k) with ResMed?

   Yes, ResMed allows employees to take loans against their 401(k) balance, subject to certain terms and conditions.

   How can I change my contribution rate to the ResMed 401(k) plan?

   Employees can change their contribution rate to the ResMed 401(k) plan through the online benefits portal or by contacting HR.

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

   If you leave ResMed, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it with ResMed until a later date.

   Does ResMed provide financial education regarding the 401(k) plan?

   Yes, ResMed offers resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

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

   Yes, there may be administrative fees associated with managing the ResMed 401(k) plan, which are disclosed in the plan documents.