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

Healthcare Provider Update: Sanmina, a global provider of integrated manufacturing solutions, partners with various healthcare providers to support the health and wellbeing of its employees. Typically, Sanmina's healthcare offerings include comprehensive insurance plans from major providers, allowing employees to receive necessary care through reputable networks. As we look towards 2026, healthcare costs are poised for significant increases, particularly impacting those reliant on Affordable Care Act (ACA) plans. Premiums are expected to rise sharply, with some states projecting hikes exceeding 60%. Contributing factors include the anticipated expiration of enhanced federal subsidies, which could leave over 22 million enrollees facing out-of-pocket costs more than 75% higher than in previous years. The combined pressures of soaring medical costs and reduced financial support are likely to provoke serious conversations about healthcare affordability for many individuals and families. Click here to learn more

For example, Sanmina 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 Sanmina 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 Sanmina 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 Sanmina employees.

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

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 Sanmina 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, Sanmina 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. 'Sanmina 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 Sanmina?

   The 401(k) plan offered by Sanmina is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

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

   Sanmina provides a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, up to a certain limit.

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

   Sanmina employees can enroll in the 401(k) plan during the initial onboarding process or during designated open enrollment periods.

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

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

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

   Yes, Sanmina's 401(k) plan may have administrative fees and investment fees that are disclosed in the plan documents provided to employees.

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

   Sanmina employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator for assistance.

   What is the vesting schedule for Sanmina's 401(k) matching contributions?

   The vesting schedule for Sanmina's 401(k) matching contributions typically follows a graded schedule, which means employees earn rights to the matching contributions over a period of time.

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

   Yes, Sanmina allows employees to take loans against their 401(k) savings, subject to the terms and conditions outlined in the plan.

   What happens to Sanmina employees' 401(k) accounts if they leave the company?

   If Sanmina employees leave the company, they have several options for their 401(k) accounts, including rolling over the balance to another retirement account or cashing out, subject to taxes and penalties.

   How often can Sanmina employees change their contribution rates to the 401(k) plan?

   Sanmina employees can typically change their contribution rates to the 401(k) plan at any time, subject to the plan's specific guidelines.