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

Healthcare Provider Update: Healthcare Provider for Timken Timken employees typically receive healthcare coverage through major insurers, with plans varying based on the specific benefits structure offered by the company. A primary provider for many of Timken's employees is Anthem Blue Cross Blue Shield, although specifics may vary by location and employer plan details. Potential Healthcare Cost Increases in 2026 As 2026 approaches, healthcare costs for Timken employees are expected to rise significantly. Premiums in the Affordable Care Act (ACA) marketplace are projected to increase sharply, with some states potentially seeing hikes of over 60%. This increase is driven by factors such as the expected expiration of enhanced federal premium subsidies, high medical cost inflation, and substantial profit margins reported by major insurers. Consequently, Timken employees may be required to shoulder a greater portion of healthcare expenses as their companies adjust benefit structures to mitigate rising costs, which could result in out-of-pocket expenses rising dramatically for many employees. Click here to learn more

For example, Timken 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 Timken 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 Timken 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 Timken employees.

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

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

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

   How can I enroll in the Timken 401(k) Savings Plan?

   You can enroll in the Timken 401(k) Savings Plan by completing the enrollment process through the Timken employee portal or by contacting the HR department for assistance.

   What types of contributions can I make to the Timken 401(k) Savings Plan?

   Timken allows employees to make pre-tax contributions, Roth (after-tax) contributions, and catch-up contributions if eligible.

   Does Timken offer a company match for the 401(k) Savings Plan?

   Yes, Timken provides a company match on employee contributions to the 401(k) Savings Plan, which helps to enhance your retirement savings.

   What is the maximum contribution limit for the Timken 401(k) Savings Plan?

   The maximum contribution limit for the Timken 401(k) Savings Plan is determined by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

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

   You can start withdrawing from your Timken 401(k) Savings Plan without penalty at age 59½, or earlier in cases of financial hardship, as defined by the plan.

   How does Timken's company match work in the 401(k) Savings Plan?

   Timken's company match typically matches a percentage of your contributions up to a certain limit, which is outlined in the plan documents.

   Can I take a loan from my Timken 401(k) Savings Plan?

   Yes, Timken allows participants to take loans from their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan.

   What investment options are available in the Timken 401(k) Savings Plan?

   The Timken 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

   How can I change my contribution rate for the Timken 401(k) Savings Plan?

   You can change your contribution rate for the Timken 401(k) Savings Plan by accessing your account through the employee portal or contacting HR for assistance.