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Healthcare Provider Update: The Southern Company's healthcare provider is generally managed through an employer-sponsored health plan, which typically relies on insurers such as Aetna or Cigna, although specific arrangements can vary. As we approach 2026, significant healthcare cost increases are anticipated due to a multitude of factors affecting the Affordable Care Act (ACA) marketplace. With some states projecting premium hikes of over 60%, the expiration of enhanced federal subsidies is expected to push monthly costs for many enrollees up by more than 75%. This unprecedented rise in premiums combined with ongoing inflation in medical costs, driven by higher hospital and drug prices, creates a complex financial landscape for consumers navigating their health insurance options in the coming year. Employers like The Southern Company may need to strategize effectively to mitigate the impact of these escalating costs on their employees' healthcare coverage and overall well-being. Click here to learn more
For The Southern Company employees, having a defined financial plan and reviewing investment strategies is critical to long-term success - and working with a trusted advisor like myself at The Retirement Group can help you stay on course.
'I represent The Retirement Group and recommend The Southern Company employees review their retirement contributions and tax strategies annually to prepare for expected and unexpected financial milestones,' said Sullivan.
In this article we will discuss:
1. Wealth management for The Southern Company employees - goal setting, tax planning and investment reviews.
2. Monthly financial actions & milestones like tax payments, retirement contributions and estate planning adjustments.
3. Strategic retirement planning - using benefits, managing Required Minimum Distributions (RMDs), and Qualified Charitable Distributions (QCDs).
Wealth management takes planning and constant attention. The following document is a month by month guide to financial management using proven economic methods to cover all of your financial life.
January: Setting Wealth Goals for the The Southern Company.
The Southern Company employees are encouraged at the start of the year to set financial goals. Obligations need to be defined - reducing debt, perfecting your estate plan or getting ready for early retirement. Writing them down and making a detailed plan increases the chances of them coming true.
Tax Considerations: In January, submit the last estimated tax payment for the previous year to the IRS for earnings between September 1 and December 31.
Quarterly Investment Review: Quarterly reviews - These are great for checking how investments are doing and if they are performing against your overall strategy. Strategic reviews from firms like Motley Fool Wealth Management may help (source).
February: Getting Tax Documents Ready for The Southern Company Employees.
By January 31, employers must issue tax documents like W-2s and 1099s. Gather all supporting documents for tax filing in February so they can be submitted by the April deadline.Contribute to a Spousal IRA to build retirement savings for a non-working spouse. This method plans for your household's future in one financial plan.
March: Addressing Lifestyle Creep
As income increases, so does the temptation to spend more. A share of these gains could help strengthen retirement funds and limit wasteful spending.Review your contribution to 401(k)s and other retirement accounts. Catch-up contributions for those over 50 help build reserves more efficiently.
March 31 - Tax Freedom Day for The Southern Company Employees.
The average American must work on Tax Freedom Day to complete their annual taxes. This date illustrates how planning can reduce taxes.
Continuing Retirement Contributions: If contribution limits for the previous year were not met, the deadline extended to April 15 allows additional contributions.
Filing and Payments: File any remaining taxes on time and consider an extension if more time is needed.
May: Evaluating Education Expenses
Check out the benefits of a 529 Plan contribution in light of new updates under SECURE Act 2.0 which expands its applications (source).
June: Planning Estimated Tax Payments.
Make the second estimated tax payment for the year for income from January 1 through March 31. Timely payments help with compliance.
July: Enhancing Estate Planning
Apply Transfer on Death (TOD) registrations to brokerage accounts to simplify asset distribution and administrative burden for your beneficiaries.
August: Reviewing Beneficiaries
Update estate plans and beneficiary designations as circumstances or family structures change.
September: Financial Preparedness
This National Preparedness Month encourages review of emergency funds and insurance coverage. Preparedness may be the key to handling unexpected situations.
October: Medicare Enrollment & RMD Planning.
You can adjust coverage during open Medicare enrollment. Start preparations early for RMD to avoid end-of-year rushes.
November: Reviewing Employment Benefits
Change health savings accounts and retirement contributions during open enrollment. Those decisions can bolster tax advantages while meeting longer-term objectives.
December: Reviewing Year-End Finances
Analyze investment income for tax impacts such as IRMAA surcharges on Medicare premiums (source). This prevents surprises come tax season.
Supporting Your Financial Journey
Get organized with tools like NerdWallet's budget planner (source) or Wealth Analytics' financial checklist (source).Its monthly financial calendar outlines steps to plan and review your financial journey. Applying these strategies may increase confidence in financial management.
QCDs—Qualified Charitable Distributions
The Southern Company people age 70 1/2 or older can direct up to USD 100,000 annually from their IRA to a qualified charity that meets RMD requirements without increasing taxable income and may reduce Medicare premiums or tax liabilities.
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Warren Street Wealth Management. 'The Southern Company and Large Company Employees.' Warren Street Wealth Management , www.warrenstreetwealth.com/fortune-500-and-large-company-employees/?utm_source=chatgpt.com . Accessed 6 Mar. 2025.
2. Lord Abbett. 'For Qualified Charitable Distributions, Timing Is Everything.' Lord Abbett , www.lordabbett.com/en-us/financial-advisor/insights/retirement-planning/qualified-charitable-distributions---timing-is-everything.html?utm_source=chatgpt.com . Published Feb. 2025.
3. CLA. 'Qualified Charitable Distributions: Benefits and Impact.' CLA Connect , www.claconnect.com/en/resources/articles/24/qualified-charitable-distributions-benefits-and-impact?utm_source=chatgpt.com . Published Dec. 2024.
4. The Retirement Group. 'Guide to a Secure Retirement for The Southern Company Employees or Retirees.' The Retirement Group , www.theretirementgroup.com/guide-to-a-secure-retirement-for-fortune-500-employees-or-retirees?utm_source=chatgpt.com . Published June 2024.
5. State Street Global Advisors. '6 Steps to Bring Financial Wellness to the Workplace.' State Street Global Advisors , www.ssga.com/library-content/pdfs/dc/6-steps-to-bring-financial-wellness-to-the-workplace.pdf?utm_source=chatgpt.com . Published Aug. 2024.
What is the 401(k) plan offered by The Southern Company?
The Southern Company offers a 401(k) plan that allows employees to save for retirement through pre-tax contributions, which can grow tax-deferred until withdrawal.
How can I enroll in The Southern Company's 401(k) plan?
Employees can enroll in The Southern Company's 401(k) plan through the online benefits portal or by contacting the HR department for assistance.
Does The Southern Company match employee contributions to the 401(k) plan?
Yes, The Southern Company provides a matching contribution to employee 401(k) accounts, which helps enhance retirement savings.
What is the maximum contribution limit for The Southern Company's 401(k) plan?
The maximum contribution limit for The Southern Company's 401(k) plan is subject to IRS limits, which are updated annually. Employees should refer to the latest IRS guidelines for specific amounts.
Can I change my contribution percentage to The Southern Company's 401(k) plan?
Yes, employees can change their contribution percentage to The Southern Company's 401(k) plan at any time through the online benefits portal.
What investment options are available in The Southern Company's 401(k) plan?
The Southern Company's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.
When can I access my funds from The Southern Company's 401(k) plan?
Employees can access their funds from The Southern Company's 401(k) plan upon reaching retirement age, or under certain circumstances such as financial hardship or termination of employment.
Does The Southern Company offer financial education regarding the 401(k) plan?
Yes, The Southern Company provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.
What happens to my 401(k) plan if I leave The Southern Company?
If you leave The Southern Company, you have several options for your 401(k) plan, including rolling it over to another retirement account, leaving it with The Southern Company, or cashing it out (subject to taxes and penalties).
Are there any fees associated with The Southern Company's 401(k) plan?
Yes, The Southern Company’s 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.
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