August 01, 2024

Ep 141: Moderna 401K Workshop

26 minutes

“The information I am providing is my opinion and not necessarily that of my firm or this platform. I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations”

In this workshop titled "Smart 401K Decisions" for Moderna employees, Kris Flammang and Collin Habig of LPF Advisors provided a comprehensive overview of Moderna's 401K plan. They began by explaining eligibility and contribution guidelines, including age and service requirements, company match details, and the options for Roth 401K contributions. They discussed the importance of diversifying investments, utilizing target date funds, and the flexibility within the plan. The session covered distribution options upon retirement or changing jobs, potential tax implications, and ways to avoid penalties. Common mistakes, such as failing to update beneficiaries or not maximizing contributions, were highlighted. The workshop emphasized the importance of aligning 401K strategies with overall financial goals and offered further resources and personal consultations to help employees optimize their retirement planning. The advisors encouraged participants to take advantage of auto-escalation features and consider a comprehensive approach that includes stock options and RSUs. They concluded by inviting attendees to contact them for personalized advice and future workshops on related topics.

Takeaways

Understanding Eligibility and Contributions: Employees become eligible for the Moderna 401K plan at 21 with one month of service. Contributions can be adjusted anytime, and setting an auto-increase is recommended for better savings.

Maximizing Company Match and Roth 401K Options: To maximize the company match, employees should contribute at least 6% of their eligible earnings. High-income earners can benefit from the Roth 401K option, which allows for tax-free withdrawals in retirement.

Diversifying Investments: The plan offers various investment options, including target date funds and individual funds, emphasizing the importance of diversification and matching investments to one's risk tolerance and time horizon.

Distribution Options and Tax Implications: Upon retirement or changing jobs, employees have several distribution options, including lump sum withdrawals and direct rollovers to IRAs. They should be aware of tax implications and potential penalties for early withdrawals.

Avoiding Common Mistakes: Listeners are reminded to regularly update their beneficiaries, increase contributions as income rises, and ensure their investments align with their risk tolerance and retirement timeline to avoid common mistakes in managing their 401K.

Connect with Kris Flammang:

(5) Kristopher Flammang CRPC®AIF®BFA® | LinkedIn

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