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Navigating Your Retirement Options: A Comprehensive Guide for H&R Block Employees on 401(k), Social Security, and Pension Choices

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I am aware many of you are at a significant cross-road in life….. either voluntarily or involuntarily, may be leaving H&R Block


There are several options that you may come across, along with a list of questions you may have when that time comes.

With varying topics to go over when you're retiring, communicating with an adviser who can recommend you solid advice on how to proceed for life after H&R Block has many benefits. As a retiree, you will need to prepare for the collection on pension, 401K, and social security. With the guidance of a financial adviser, you will be able to understand how to choose the best route for your cash-balance pension, 401K, individual IRA, etc.

 
  • Should I keep my options open as a H&R Block re-hire?
  • Should I leave my money in the H&R Block 401K plan? Why or why not?
  • What are the benefits to an individual IRA? 
  • If I roll the money over, will I need to pay taxes?
  • How can I get more money into a Roth IRA or at least get Roth-IRA style tax benefits?
  • What are some steps I can take to maximize my retirement income?
  • How can I stabilize my retirement income, and be sure it doesn’t run out?
  • Should I take my cash balance pension, or leave it in the H&R Block Pension Plan? And why?
  • What do I need to know about Social Security?
  • How best can I protect my spouse but not decrease my Pension Payout via the survivor benefit?

What's tough about these is that every situation is unique and quite different. Simply put, there is no “one size fits all” plan. There is truly no way to tell if your current financial guidance is really the best. As folks pay for planning services (fees based), their willingness to seek a 2nd opinion evaporates as they have already placed an initial investment in. They won't want to spend additional money to get a 2nd opinion which will inhibit them from comparing the advice they receive.

Good planning — or any planning — will always be better than none. But, an effective plan isn’t simply developed and then placed on auto pilot. You need to continuously reassess your decisions and direction.

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This theory is particularly relevant during big “transitions” in life. These would include getting a new job, leaving a job, retiring, the death of a loved one, kids leaving home, etc.

We understand these topics can be confusing and extensive. If you currently don’t have anyone to help run down your options, tax implications, and pros and cons of either your existing strategy OR if you simply just need a “2nd opinion” on your existing plan or planner, please let me know here so that I can reach out to current clients or referrals to assist you.

Your finances will inevitably be squeezed without the certainty of a regular income and any form of financial assistance can lower stress levels. Run a cash flow projection and budget before you leave the company to determine how to leave. Get a free consultation from an adviser who have years of experience servicing H&R Block employees.

The first step is to run a cash flow to determine an adequate income. The cash flow will assist you in determining how to take severance. When receiving a pension, a cash flow will determine how much money you need to make to supplement the monthly retirement annuity. Take into mind, for a lot of people, it is recommended relocating for a year or two to reach your Mod-75. For more information on the Mod-75, take a look here. One of the costliest mistakes many people make is not relocating.

After running a cash flow, begin to construct your budget. First, make a list of your major household expenses (mortgage, rent payments, utility bills, etc.). Next, jot down all of your assets and sources of income (severance pay, unemployment benefits, savings, food stamps, and so on). Lastly, adapt your budget to fit with your new circumstances.

Trim any unnecessary outgoings, develop a plan for spending less, and consider contacting creditors to refinance your mortgage or reschedule any repayment plans. (You may be able to take a mortgage “payment holiday” in the short term.)

Knowing how much time your resources will allow you for job hunting can help you to keep stress and anxiety in check. After all, having time can be the difference between rushing to take the first mediocre job you can find, and finding a satisfying job that you’ll love. With a guide of a financial advisor, see if your severance can give you extended time to look for another job.

You may also need to consider taking on temporary or freelance work to bring in short-term cash. Keep this in mind, and look into it in the first few days after your departure.

We understand that this can be an emotional time, but remember, there's always light at the end of the tunnel.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Restructuring and Layoffs: In early 2024, H&R Block announced a major restructuring plan aimed at streamlining operations and improving efficiency. This move included a reduction in workforce, affecting around 200 positions across various departments. The company stated that the decision was driven by the need to adapt to the evolving tax services market and to invest in digital solutions. This restructuring is significant due to the current economic environment, which is characterized by uncertainty and rapid technological changes, impacting job security and company strategies.
H&R Block Stock Options (2022-2024): 2022: H&R Block provided stock options to senior executives and key employees as part of their incentive programs. Stock options were available primarily to those in leadership roles and high-impact positions within the company. 2023: In 2023, H&R Block continued to offer stock options, with an emphasis on aligning employee interests with company performance. Options were granted based on performance targets and tenure. 2024: H&R Block maintained its stock option program, with updates to align with market conditions and internal performance metrics. Eligibility remained focused on senior leadership and strategic contributors.
H&R Block Official Site: hrblock.com Health Benefits: H&R Block offers a range of health benefits including medical, dental, and vision insurance. The company provides options for both in-network and out-of-network care, with varying levels of coverage depending on the plan. They also offer Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to help employees manage out-of-pocket expenses. Glassdoor Glassdoor: glassdoor.com Employee Reviews: According to employee reviews on Glassdoor, H&R Block provides competitive health benefits, including comprehensive medical insurance plans, dental, and vision coverage. The benefits are generally rated positively by employees, with specific praise for the company’s supportive health programs and wellness initiatives. Indeed Indeed: indeed.com Health Benefits: Reviews on Indeed confirm that H&R Block's health benefits include medical, dental, and vision insurance. The company also offers wellness programs and has received feedback about the effectiveness of their health benefits in supporting employee well-being. LinkedIn LinkedIn: linkedin.com Company Profile: H&R Block’s LinkedIn page mentions that the company provides a comprehensive benefits package including healthcare, wellness programs, and retirement plans. Specific details are not always available, but the general sentiment is positive regarding their health benefits. Benefits Guide Benefits Guide: benefitsguide.com Recent Updates: For 2023 and 2024, H&R Block has updated its health benefits offerings to include enhanced telehealth services and mental health resources. There is a focus on providing better access to mental health professionals and expanded telemedicine options as part of their overall healthcare strategy.
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For more information you can reach the plan administrator for H&R Block at , ; or by calling them at .

https://www.hrblock.com/ https://www.thelayoff.com/ https://www.benefitsguide.com/start-here https://www.indeed.com/ https://www.glassdoor.com/index.htm

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