Getting Ready to Retire
Last Updated May 2, 2023
If you’re thinking about retirement, you’ve got a lot on your mind. It’s one of the most important steps you’ll ever take.
Your Benefits at Retirement
As you prepare for retirement, make sure you understand what generally happens to your RRD benefits when you retire.
Medical and Prescription Drugs
Active medical coverage for you and your eligible covered family members ends on the last day of the month in which you retire. However, you, your spouse or covered dependents may continue coverage under COBRA until the end of your qualifying COBRA period, which is generally 18 months after you leave the company. If you enrolled in Medicare during the 18-month period prior to your retirement, then the qualifying COBRA period may be further extended for your spouse and dependents, to 36 months from your Medicare enrollment date.
NOTE: Your medical coverage as an active employee is considered creditable coverage for Medicare Parts B and D, so you will not face any penalties when you sign up for Medicare as long as you don’t have a break in coverage between leaving the active plan and starting Medicare coverage. (For Part B, this is the case for you and your spouse, but not for a domestic partner. Domestic partners who are eligible for Medicare Part B should enroll at their first opportunity. Otherwise, they may face Part B premium penalties, breaks in coverage, and significantly reduced benefits under the Active Group Health Program.)
If you are Medicare-eligible when you leave RRD but you don’t enroll in Medicare during your Special Enrollment Period, then you will need to wait until the next Medicare General Enrollment Period to enroll, and you’ll have to pay a Medicare late enrollment penalty. (The special enrollment period for Part B is generally the eight-month period after the month your active coverage ends, unless you are in your initial Medicare enrollment period, which ends three months after the month you turn 65. The special enrollment period for Part D is the two-month period after the month your active coverage ends.)
If you are under age 65 (and not otherwise Medicare-eligible) when you retire, you may want to explore the coverage available through the individual market or the public health insurance exchange (healthcare.gov). You might find an option that better fits your budget and coverage needs, and you might be eligible for a tax credit subsidy from the exchange.
Dental and Vision
Coverage for you and your eligible covered family members ends on the last day of the month in which you retire. However, you may choose to continue coverage under COBRA, generally for 18 months after you separate from the company.
Health Savings Account (HSA)
Money in your HSA is always yours — even when you retire. Although you can’t contribute to your HSA after you reach age 65 if you are enrolled in Medicare, you can continue to use the money in your account to pay for eligible medical expenses tax-free — including Medicare premiums, deductibles, copays and coinsurance under any part of Medicare.
NOTE: You cannot use HSA dollars to purchase a Medicare supplemental insurance (“Medigap”) policy. After you reach age 65, you can use your HSA to pay for things other than medical expenses. If you take this route, the amount you withdraw will be treated as taxable income, but it will not be subject to other penalties. (If you are under age 65 and you use your HSA for non-medical expenses, the dollars you withdraw may be subject to regular income tax plus a 20% additional tax on the amount withdrawn.) For more details about your HSA, visit healthequity.com.
Flexible Spending Accounts (FSAs)
FSAs allow you to set aside before-tax dollars to pay for eligible out-of-pocket health and dependent day care expenses.
Health Care FSA
If you are enrolled in a Health Care FSA, you can request reimbursement for eligible expenses incurred up to your separation date if submitted by the deadline (March 31 of the year after the calendar year in which you participated). If you elect COBRA, you may continue contributions post-tax if you want to be reimbursed for expenses incurred after your separation date.
Dependent Day Care FSA
If you are enrolled in the Dependent Day Care FSA, you can request reimbursement for eligible expenses incurred through the end of the calendar year that includes your separation date if submitted by the deadline (March 31 of the year after the calendar year in which you participated).
401(k) Savings Plan
The RR Donnelley Savings Plan helps you set aside and invest pre-tax, Roth 401(k), and/or after-tax money for
your future. When you retire, you can request a distribution of your entire account balance. Your account will be distributed in a single-sum payment; as a direct rollover distribution to another qualified retirement plan such as a 401(k), 403(a), 403(b) or 457 plan; or a direct rollover to a traditional Individual Retirement Account (IRA).
If your account balance exceeds $1,000, you can leave your account invested in the Savings Plan until your balance falls below $1,000 or until the year after you turn age 72. You also have the option to receive installment distributions. If you elect to receive a distribution, payment is made no sooner than 30 days after you retire from RRD. If your account balance is $1,000 or less, you will be required to take a distribution following separation.
The trustee is required to withhold 20% for federal income taxes from the taxable portion of your distribution. If you are younger than age 59½, a 10% tax penalty may also apply to a distribution; you pay this penalty when you file your annual income tax return. If you elect a rollover, taxes on your distribution are deferred until you later take distributions, and there is no withholding.
For more information, contact Fidelity.
To confirm your eligibility for pension benefits, contact the Pension Service Center.
Life and AD&D Insurance
The Life and Accident Insurance Program provides important financial protection if something happens to you or your spouse, domestic partner or children.
Your employee and dependent (spouse and child) life coverage ends on your separation date. You may be eligible to port your current coverage (i.e., keep your same insurance benefit even though you are no longer part of the group plan) if you are actively at work on the day prior to your separation. If portability is not available, you may convert your coverage to an individual policy. You must complete your request to port or convert your coverage within 30 days of your separation at retirement.
Your AD&D coverage also ends on your separation date. You may be eligible to convert your coverage to an individual policy if you contact the vendor within 30 days of your separation at retirement.
Social Security Benefits
Visit the Social Security Administration to learn more about your Social Security benefits and find helpful online retirement planning tools and step-by-step instructions for applying for your benefits.
The following voluntary benefits are provided through and administered by the program vendors. They are not sponsored, endorsed nor maintained by RRD. Contact each vendor for information about what happens to your coverage when you leave the company.