What TransDigm Group Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider for TransDigm Group TransDigm Group primarily collaborates with Anthem Inc. for its employee healthcare needs. Anthem offers a variety of medical, pharmacy, dental, and vision network services to ensure comprehensive coverage for TransDigm employees. Potential Healthcare Cost Increases in 2026 In 2026, TransDigm Group employees may face significant healthcare cost increases due to soaring premiums in the Affordable Care Act (ACA) marketplace. With some states expecting premium hikes exceeding 60%, many employees could see out-of-pocket costs rise sharply. This surge is particularly troubling as nearly 92% of ACA enrollees might experience increases of 75% or more if enhanced federal subsidies are not extended. As employers navigate these challenges, many are likely to shift more healthcare costs onto employees to mitigate their financial burdens. Click here to learn more

For example, TransDigm Group 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 TransDigm Group 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 TransDigm Group 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 TransDigm Group employees.

Simply for political, economic, and social reasons, many TransDigm Group 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 TransDigm Group.

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 TransDigm Group 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, TransDigm Group 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. 'TransDigm Group 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 type of retirement plan does TransDigm Group offer to its employees?

   TransDigm Group offers a 401(k) Savings Plan to help employees save for retirement.

   Is participation in the TransDigm Group 401(k) Savings Plan mandatory?

   No, participation in the TransDigm Group 401(k) Savings Plan is voluntary; employees can choose whether or not to enroll.

   What is the eligibility requirement for TransDigm Group employees to participate in the 401(k) Savings Plan?

   TransDigm Group employees are typically eligible to participate in the 401(k) Savings Plan after completing a specified period of service, usually within the first year of employment.

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

   Yes, TransDigm Group offers a matching contribution to the 401(k) Savings Plan based on employee contributions, subject to certain limits.

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

   The maximum contribution limit for the TransDigm Group 401(k) Savings Plan is aligned with the IRS limits, which can change annually.

   Can TransDigm Group employees choose how their 401(k) contributions are invested?

   Yes, TransDigm Group employees can choose from a variety of investment options within the 401(k) Savings Plan to suit their retirement goals.

   When can TransDigm Group employees access their 401(k) Savings Plan funds?

   TransDigm Group employees can access their 401(k) Savings Plan funds upon reaching retirement age, or in cases of hardship or termination of employment, subject to plan rules.

   Are there any fees associated with the TransDigm Group 401(k) Savings Plan?

   Yes, there may be administrative fees associated with the TransDigm Group 401(k) Savings Plan, which are disclosed in the plan documents.

   How often can TransDigm Group employees change their contribution amounts to the 401(k) Savings Plan?

   TransDigm Group employees can typically change their contribution amounts at designated times throughout the year, as outlined in the plan guidelines.

   Does TransDigm Group provide any educational resources for employees regarding the 401(k) Savings Plan?

   Yes, TransDigm Group offers educational resources and workshops to help employees understand their 401(k) Savings Plan options and investment strategies.