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Enhancing Retirement Strategy for Syneos Health Employees: 2025 Social Security COLA Insights

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For Syneos Health employees nearing retirement, navigating the economic landscape is essential for maintaining financial health. The annual Social Security Cost-of-Living Adjustment (COLA), a significant factor in this dynamic, is set to increase by 2.5% for the coming year, reflecting more moderate inflation trends compared to recent years.

Understanding the 2025 COLA for Syneos Health Employees

Originally established in the 1970s to address hyperinflation,  the COLA is designed to adjust Social Security  benefits in line with cost-of-living increases, offering retirees a measure of stability. This adjustment is linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which saw a 2.2% rise through September 2024, forming the basis for next year’s COLA determination.

While an increase in Social Security benefits is beneficial, it’s important for retirees, including those from Syneos Health, to understand potential tax implications. Higher Social Security benefits can lead to increased combined income, which may affect taxes due to the inclusion of wages, interest, dividends, and distributions from retirement accounts like 401(k)s and IRAs.

For example, a retiree receiving $24,000 in Social Security benefits while drawing $37,667 from an IRA might face higher tax obligations if inflation requires increased withdrawals. This could raise the taxable portion of their Social Security benefits, thus elevating their overall tax liability.

Tax Management Strategies for Syneos Health Retirees

To manage potential tax increases, Syneos Health retirees may consider several strategies:

  1. Diversifying Income Sources : Using brokerage accounts can help control how Social Security benefits are taxed, as capital gains may contribute to provisional income, but the principal does not.

  2. Strategic Withdrawals : Managing withdrawals from traditional 401(k)s or IRAs is essential, as these are taxed as ordinary income. Complying with required minimum distributions is also crucial to prevent penalties.

  3. Utilizing Tax-Advantaged Accounts : Withdrawals from Roth IRAs or Roth 401(k)s, and contributions to Health Savings Accounts (HSAs), are exempt from federal taxes and do not impact Social Security taxes.  https://www.irs.gov/  

Timing Social Security Benefits Wisely

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Selecting the right time to begin collecting Social Security benefits is a critical decision. Starting benefits early may seem appealing, especially with an increased COLA, but it usually results in lower lifetime earnings. A more measured approach for Syneos Health employees could involve waiting until the Full Retirement Age (FRA) of 67 or even delaying until age 70, allowing benefits to increase by 8% annually after FRA.

Long-Term Planning for Syneos Health Retirees

Long-term tax planning is valuable for navigating retirement successfully. This approach includes multi-year strategies that can potentially reduce overall tax burdens. For comprehensive planning, it’s beneficial for Syneos Health retirees to consult with a tax advisor who can handle the intricacies of tax management effectively and align strategies with their financial and retirement goals.

Final Thoughts

Understanding the implications of the Social Security COLA is essential for Syneos Health retirees facing the challenges of inflation and tax planning. By adopting a careful financial strategy and seeking professional advice, retirees can enhance their financial foundation. Proactive financial management is key to building a stable and fulfilling retirement.

Additionally, Syneos Health retirees should note the  Senior Citizens' Freedom to Work Act of 2000 , which removes the earnings test for Social Security recipients who have reached or exceeded their full retirement age. This change allows retirees who continue working while receiving benefits to do so without a reduction in benefits, regardless of their earnings. This policy can significantly increase income flexibility for retirees who choose to remain active in the workforce.

What is the 401(k) plan offered by Syneos Health?

The 401(k) plan at Syneos Health is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

Does Syneos Health match contributions to the 401(k) plan?

Yes, Syneos Health offers a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.

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

Employees can enroll in the Syneos Health 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

What is the eligibility requirement to participate in the Syneos Health 401(k) plan?

Employees of Syneos Health are typically eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the plan documentation.

How much can I contribute to the Syneos Health 401(k) plan each year?

The contribution limits for the Syneos Health 401(k) plan are in line with IRS regulations, which may change annually. Employees should check the latest guidelines for the current limits.

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

Yes, Syneos Health allows employees to take loans against their 401(k) balance, subject to certain terms and conditions outlined in the plan.

What investment options are available in the Syneos Health 401(k) plan?

The Syneos Health 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

How often can I change my investment choices in the Syneos Health 401(k) plan?

Employees can change their investment choices in the Syneos Health 401(k) plan at any time, allowing for flexibility in managing their retirement savings.

What happens to my Syneos Health 401(k) if I leave the company?

If you leave Syneos Health, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Syneos Health plan, depending on the plan’s rules.

Is there a vesting schedule for the Syneos Health 401(k) plan?

Yes, Syneos Health has a vesting schedule for employer contributions, meaning employees must work for the company for a certain period before they fully own the employer-matched funds.

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

*Please see disclaimer for more information

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