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Retirement Abroad? Key Costs Berkshire hathaway Employees Should Consider Before You Go

'Berkshire hathaway employees considering retirement abroad should recognize that worldwide taxation, limited Medicare coverage overseas, currency fluctuations, and cross-border estate coordination can materially influence long-term income and legacy planning. Be sure to take a comprehensive view of these factors and consult qualified legal and tax professionals before making an international move.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Berkshire hathaway employees exploring retirement abroad should carefully weigh how ongoing U.S. tax obligations, health care coverage limitations, currency exposure, and cross-border estate considerations may shape their long-term financial picture. Aim to coordinate with experienced planning, legal, and tax professionals before committing to an international transition.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Key U.S. tax rules that follow retirees overseas.
Health care and Medicare considerations for living abroad.
Financial planning complexities, such as currency risk and estate planning.

By Brent Wolf, CFP®, Wealth Enhancement

For decades, many Americans have dreamed about retiring abroad—whether for lifestyle reasons, proximity to family, or simply a change of scenery. For many Berkshire hathaway employees, the idea of enjoying retirement overseas after years of dedication can feel especially rewarding.

For individuals over 55 with substantial invested assets, retiring abroad may be possible. However, it requires careful planning. Moving overseas does not automatically simplify finances and, in some cases, it can increase complexity—particularly when retirement income includes employer-sponsored plans.

Before making a decision, there are several important financial considerations.

1. The U.S. Tax System Follows You

The United States generally taxes U.S. citizens on their worldwide income, regardless of where they live. This remains true even if a Berkshire hathaway employee establishes residency in another country.

That means:

- Traditional IRA and many employer-sponsored retirement plan withdrawals are generally taxable for U.S. purposes.

- Required Minimum Distribution (RMD) rules apply to most tax-deferred retirement accounts, such as traditional IRAs and many employer plans (though not to Roth IRAs for original owners).

- Social Security benefits may be taxable depending on income levels.

- Capital gains must continue to be reported.

- Depending on thresholds, foreign financial accounts and assets may need to be reported, including potential FBAR (FinCEN Form 114) and/or FATCA Form 8938 filings.

International tax compliance requirements remain in place after moving abroad, and penalties for noncompliance can be significant. U.S. citizens residing overseas typically continue to have federal filing obligations.

2. Medicare and Health Care Outside the United States

Medicare generally does not cover health care services received outside the United States, except in limited circumstances. Some Medigap policies may provide limited emergency coverage abroad, but traditional Medicare coverage is largely restricted to care received within the U.S. ¹

As a result, retirees living overseas often evaluate alternative health care arrangements, which may include purchasing additional coverage. For Berkshire hathaway employees accustomed to employer-sponsored health care benefits, this transition requires thoughtful comparison of costs and coverage.

Health care planning for retirees—including income-related Medicare premium considerations and broader long-term planning—can become more complex when residency changes.

3. Currency Risk

If retirement income is denominated in U.S. dollars but expenses are paid in another currency, exchange-rate fluctuations can affect purchasing power. This may be particularly relevant for Berkshire hathaway retirees relying on distributions from U.S.-based retirement accounts.

For example, a significant change in currency exchange rates can increase or decrease the effective cost of living when converting dollars into foreign currency. This exposure introduces additional variability that should be evaluated in long-term income planning.

4. Estate Planning Across Borders

Estate planning can become more complex when assets or beneficiaries span multiple jurisdictions. Berkshire hathaway employees who accumulate assets across different states or countries during their careers may already have layered estate considerations.

Many countries have forced heirship rules. Some impose inheritance taxes on local assets. Legal treatment of trusts may differ from U.S. law, and foreign real estate may require additional planning to align with U.S. estate documents.

When individuals own property or financial accounts outside the United States, coordination between U.S. estate planning documents and local legal requirements is often necessary.

Evaluating the Decision Carefully

Retiring abroad can be appealing for lifestyle and personal reasons. However, U.S. taxation of worldwide income, limited Medicare coverage outside the country, currency exposure, and cross-border estate planning considerations are important financial factors for Berkshire hathaway employees to evaluate before making a long-term move.

A thoughtful analysis should consider how relocation may affect income planning, tax obligations, health care arrangements, and legacy goals over the coming decades.

How The Retirement Group Can Help

Relocating internationally in retirement introduces tax, health care, estate, and income planning considerations that deserve careful review. The Retirement Group works with individuals navigating complex retirement decisions, including Berkshire hathaway employees evaluating international retirement, and can help assess how a move abroad may affect long-term planning.

If you would like guidance tailored to your situation, you can contact The Retirement Group at (800) 900-5867 to discuss your retirement planning questions.

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Sources:

1. Centers for Medicare & Medicaid Services. Medicare & You 2026 . U.S. Department of Health and Human Services, 2026, https://www.medicare.gov/publications/10050-medicare-and-you.pdf .

2. Internal Revenue Service. Tax Guide for U.S. Citizens and Resident Aliens Abroad . Publication 54, Dec. 2025, https://www.irs.gov/pub/irs-pdf/p54.pdf .

3. Congressional Research Service. Social Security Benefit Taxation Highlights . IF11397, 23 Sept. 2024, https://www.congress.gov/crs_external_products/IF/PDF/IF11397/IF11397.4.pdf .

How does the merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan specifically affect the retirement benefits for current employees at Johns Manville? In what ways can eligible employees of Johns Manville leverage the benefits of this merger to maximize their retirement planning?

Impact of Merger on Current Employees' Retirement Benefits: The merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan does not decrease the pension benefits previously earned by employees under their prior plans. Employees continue to receive the same benefits with the same payment options as provided by their prior plan. Any previous payment elections, beneficiary designations, and qualified domestic relations orders remain effective. This consolidation also maintains the insurance of pension benefits through the federal Pension Benefit Guaranty Corporation.

What are the implications for employees of Johns Manville if they choose to retire early prior to their Normal Retirement Age? How do the specific conditions set forth in the Berkshire Hathaway Consolidated Pension Plan guide early retirees from Johns Manville in making informed decisions regarding their benefit options?

Implications of Early Retirement: Employees of Johns Manville who choose to retire early, before their Normal Retirement Age, can still receive benefits. However, these benefits are adjusted based on the age of retirement. If an employee retires at 60, for instance, their monthly benefit payment from the plan will be reduced by a certain percentage for each month that the benefit payments start before the Normal Retirement Age. This reduction compensates for the longer period over which benefits are expected to be paid.

Given the unique characteristics of the Merged Plan, what should employees at Johns Manville consider when calculating their Average Final Salary, and how does this calculation impact their retirement benefits? Additionally, how is Covered Compensation factored into this adjustment, and what strategies can employees employ to ensure accurate calculations?

Calculation of Average Final Salary and Covered Compensation: When calculating the Average Final Salary for retirement benefits, it includes the highest-paid, five consecutive years out of the last ten years of employment. This calculation impacts the retirement benefits as it forms part of the formula used to determine the pension amount. Additionally, Covered Compensation, which refers to the average of the Social Security wage bases, is used to adjust portions of the salary in the benefits calculation, ensuring that the benefits align with national wage growth trends.

How can employees of Johns Manville navigate the various options available for retirement benefit payments outlined in the Berkshire Hathaway Consolidated Pension Plan? What key points should Johns Manville employees consider regarding the selection of forms of payment and potential tax implications in retirement?

Navigating Retirement Benefit Payment Options: Employees of Johns Manville need to consider the form of payment for their retirement benefits, as different options can have different tax implications and affect monthly income. Options typically include lump sums, annuities, or a combination. Employees should consider their financial needs, tax situation, and life expectancy when choosing the form of payment. Consulting with a financial advisor could be beneficial.

For employees at Johns Manville, what steps should they take to stay informed about their accumulated service and benefit service credits, particularly in relation to the changes brought about by the merger into the Berkshire Hathaway Consolidated Pension Plan? How do vested rights impact their eligibility for retirement benefits?

Staying Informed About Service Credits: To manage the transition and keep track of their service credits post-merger, Johns Manville employees should regularly review their service and benefit statements, maintain communication with the plan administrator, and attend any informational meetings or seminars offered by Berkshire Hathaway. Understanding how service credits are calculated and tracked ensures that employees can accurately plan for retirement.

What is the process for reemployment under the Terms of the Merged Plan for former employees of Johns Manville, and how can they ensure their accumulated benefit service is credited effectively upon rehire? What are the implications of this reemployment on their retirement benefits, particularly concerning their previous employment history?

Reemployment and Accumulated Benefits: Reemployed former employees of Johns Manville should verify how their accumulated benefits are treated upon their rehire. Generally, benefits accumulated during previous periods of employment will be credited upon rehire, but specific plan provisions should be consulted to confirm how reemployment affects accrued benefits and eligibility for additional benefits.

What do the terms of the Berkshire Hathaway Consolidated Pension Plan dictate regarding disability retirement benefits for eligible employees at Johns Manville? How should employees approach the application process for disability benefits, and what criteria do they need to be aware of to qualify?

Disability Retirement Benefits: Eligible employees of Johns Manville who become disabled according to the terms of the plan may qualify for disability retirement benefits. The process involves a determination by the plan administrator, and employees must meet specific criteria outlined in the plan documents to qualify. Understanding these criteria and the required documentation is crucial for accessing disability benefits.

How can employees of Johns Manville ensure they have adequate protection for their beneficiaries under the retirement provisions outlined in the Berkshire Hathaway Consolidated Pension Plan? What specific steps can employees take to secure these benefits, and how can they keep their beneficiary designations updated?

Beneficiary Protections: Employees should regularly review and update their beneficiary designations to ensure that their retirement benefits are distributed according to their wishes upon their death. This includes making any necessary changes following life events such as marriage, divorce, or the birth of a child.

How does participation in the Merged Plan differ for salaried and hourly employees of Johns Manville, and what specific eligibility criteria apply to each group? How can understanding these differences improve retirement planning for employees across the different classifications?

Differences in Participation for Salaried and Hourly Employees: The eligibility and benefits might differ between salaried and hourly employees under the Merged Plan. Understanding these differences helps employees make informed decisions about their retirement planning and benefit utilization.

How can employees of Johns Manville contact the Local Benefits Administrator for assistance regarding their retirement benefits and the contents of their plan documents? What are the recommended methods of communication for inquiries or requests regarding their Merged Plan benefits?

Contacting Local Benefits Administrator: Employees should contact their Local Benefits Administrator for any inquiries or assistance regarding their retirement plan. Keeping the contact information updated and consulting the administrator for guidance on plan provisions and benefit claims is advised for navigating their retirement benefits effectively.