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Viatris Employees: Uncover the Truth Behind Common Retirement Myths

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Healthcare Provider Update: Viatris Healthcare Provider Information Viatris, as a global healthcare company, partners with a variety of healthcare providers to ensure that high-quality medicines are accessible to patients. While specific healthcare partnerships vary by region and the type of products offered, Viatris focuses on collaborating with providers involved in specialty pharmaceuticals and chronic disease management. This includes partnerships with hospitals, clinics, and pharmacies to enhance patient health outcomes through innovative solutions and patient access programs. Brief Overview of Potential Healthcare Cost Increases in 2026 As healthcare costs continue to rise, Viatris employees may face significant increases in their out-of-pocket expenses starting in 2026. Projections indicate that premiums for Affordable Care Act (ACA) marketplace plans could surge, with some states experiencing hikes of over 60%. This surge stems from a confluence of factors, including the expected expiration of enhanced federal premium subsidies and ongoing medical inflation, which is projected to exacerbate the burden on consumers. Companies are also revising their employee health plans, potentially leading to higher deductibles and more substantial cost-sharing, placing greater financial pressure on employees seeking affordable healthcare coverage. Click here to learn more

The transition into retirement often leads to a shift in financial balances, including changes in tax responsibilities stemming from investment income sources such as IRAs. Viatris employees might assume that their tax burdens will decrease as their regular employment income ceases. However, profound tax planning and understanding of IRA distributions are essential to avoid unexpected tax hikes during retirement.

The Myth of Reduced Taxes in Retirement

Ed Slott, a renowned tax and IRA expert and author of 'The Retirement Savings Time Bomb...And How to Defuse It,' addresses the widespread myth that taxes decrease after retirement. Viatris employees, like many others, might find themselves in higher income brackets than anticipated. This situation is largely due to the nature of deferred taxation on retirement accounts like IRAs, which, if not managed properly, can lead to significant tax liabilities.

Tax Strategy and IRA Management for Viatris Employees

In the years leading up to and immediately following retirement, strategic financial planning can greatly influence an individual's tax situation. Between the ages of 59½ and 73, Viatris employees have a prime opportunity to manage their IRAs without penalties, offering a chance to alter their tax obligations. This period before the onset of Required Minimum Distributions (RMDs) at age 73 is critical for implementing strategies aimed at reducing future taxes.

Market Conditions and Conversion Timing

The timing of a Roth conversion can significantly impact financial outcomes due to market condition fluctuations. According to Slott, it is advisable to wait until the end of the year (November or December) to perform conversions. Viatris employees can benefit from this timing strategy, allowing for a better understanding of the financial year and any potential tax liabilities, thereby optimizing the tax impact of the conversion.

Tax Planning Beyond RMDs for Viatris Employees

For those who continue saving during retirement, prioritizing Roth accounts can be advantageous. Unlike traditional IRAs, Roth accounts do not require RMDs, offering more flexibility and potential tax savings in the future for Viatris employees. Moreover, understanding and applying tax laws and provisions, such as Qualified Charitable Distributions (QCDs), can further reduce taxable income. The QCD allows individuals over age 70½ to donate part of their IRA distributions directly to a charity, reducing their taxable income.

Long-term Benefits of Roth Contributions

The benefits of Roth contributions extend beyond immediate tax advantages. For younger employees at Viatris starting their careers, investing in Roth accounts ensures that their savings grow tax-free, providing a significant long-term benefit. Recent legislative changes under the SECURE Act 2.0 have further facilitated the shift to Roth accounts by allowing employers to make Roth 401(k) contributions, enhancing the appeal of Roth savings for all ages.

In Conclusion

Effective tax planning is crucial for managing retirement finances, particularly concerning IRAs. Viatris employees should understand the interplay between various types of retirement accounts and tax strategies, leading to substantial savings and a more secure financial future. Whether considering Roth conversions or optimizing contribution types, the goal remains the same: to minimize tax liabilities and maximize financial freedom in retirement.

Further Clarifications for Viatris Employees

For deeper discussions on managing IRA rollovers and avoiding common risks, resources like Morningstar provide valuable information and expert advice. Viatris employees can enhance their ability to handle the complex challenges of retirement finances by collaborating with financial experts and staying informed about tax laws and retirement planning strategies.

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A recent study by the  Tax Policy Center  highlights the critical importance of state taxes in retirement planning, an often-overlooked element. Viatris retirees who might consider relocating to or residing in states with significant tax obligations should understand state tax regulations. States like Florida and Nevada do not impose income taxes, which can greatly reduce the overall tax burden on retirement distributions from IRAs and other taxable funds. This strategic relocation decision is increasingly valued by Viatris employees looking to optimize their financial resources.

Navigating retirement tax strategies is like piloting a boat through changing winds. Just as an experienced sailor must adjust their sails to effectively harness the wind, Viatris retirees need to adjust their financial strategies to manage the fluctuating tax consequences of their IRA distributions. The calm of pre-retirement can quickly be disrupted by the required minimum distributions (RMDs) at age 73, pushing retirees towards higher tax levels, just like unforeseen winds challenge even the most skilled navigators. Employing strategies such as Roth conversions during the 'golden years' from 59½ to 73 is akin to adjusting your rigging before a storm, ensuring a smoother and more controlled financial transition into retirement.

 

What is the Viatris 401(k) plan?

The Viatris 401(k) plan is a retirement savings plan that allows eligible employees to save for retirement through pre-tax and/or Roth contributions.

How can I enroll in the Viatris 401(k) plan?

You can enroll in the Viatris 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided there.

What is the employer match for the Viatris 401(k) plan?

Viatris offers a matching contribution to the 401(k) plan, which may vary based on your contributions and the company's policy. You should refer to the plan documents for specific details.

When can I start contributing to the Viatris 401(k) plan?

Eligible employees can start contributing to the Viatris 401(k) plan after completing the required waiting period, typically within the first few months of employment.

What types of contributions can I make to the Viatris 401(k) plan?

Employees can make pre-tax contributions, Roth contributions, and potentially after-tax contributions to the Viatris 401(k) plan, depending on the specific plan provisions.

Are there any fees associated with the Viatris 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Viatris 401(k) plan. You can find detailed information in the plan's fee disclosure document.

How does the Viatris 401(k) plan help me save for retirement?

The Viatris 401(k) plan allows you to save for retirement on a tax-advantaged basis, helping you grow your savings over time through contributions and potential employer matching.

Can I take a loan from my Viatris 401(k) plan?

Yes, the Viatris 401(k) plan may allow loans, subject to certain conditions and limits. You should review the plan documents or consult the HR department for specific details.

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

If you leave Viatris, you will have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with Viatris, depending on the plan's rules.

How often can I change my contributions to the Viatris 401(k) plan?

You can typically change your contribution amount to the Viatris 401(k) plan at least once per year or during designated enrollment periods.

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For more information you can reach the plan administrator for Viatris at , ; or by calling them at .

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