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Is a Rollover into an IRA the Right Move for You as a DaVita Employee?

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a DaVita-sponsored plan. You may also gain more investment options than what may have been available in your DaVita-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a DaVita-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that DaVita should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a DaVita-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former DaVita-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from DaVita.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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What steps should DaVita employees take to prepare for retirement within the context of the DaVita Retirement Savings Plan? How does the structure of this plan align with common retirement strategies, and what resources does DaVita provide to help employees understand their options when they are considering retirement?

DaVita employees preparing for retirement within the context of the DaVita Retirement Savings Plan should review their savings, evaluate their retirement goals, and ensure they are maximizing contributions. The plan aligns with common retirement strategies by offering diversified investment options and matching contributions, making it easier for employees to grow their retirement funds. DaVita provides resources, such as the Voya website and a dedicated retirement service center, to help employees understand their retirement options and plan effectively.

How does the DaVita Retirement Savings Plan accommodate employees who have previously held jobs with different retirement plans? What documentation is necessary for these employees to successfully roll over their funds to the DaVita Retirement Savings Plan, and how does DaVita ensure compliance with IRS regulations in these situations?

The DaVita Retirement Savings Plan accommodates employees who have held jobs with other retirement plans by allowing rollovers from qualified plans, including 401(k)s, 403(b)s, and IRAs. Employees need to obtain proof of plan qualification and taxability from their previous employer or financial institution. DaVita ensures compliance with IRS regulations by requiring proper documentation, including an IRS Letter of Determination or rollover distribution statement, as noted in the Rollover Contribution Form(DaVita_08_11_2016_Rollo…).

In what ways can DaVita employees maximize their contributions to the DaVita Retirement Savings Plan, particularly considering the IRS contribution limits for 2024? What strategies should employees consider when determining how much to contribute, and how can DaVita support employees in achieving their retirement savings goals?

DaVita employees can maximize their contributions to the Retirement Savings Plan by taking advantage of the IRS contribution limits for 2024. The limit for employee deferrals is expected to be around $23,000, with an additional catch-up contribution of $7,500 for those aged 50 and above. Strategies include contributing enough to receive the full employer match and adjusting contributions to meet future goals. DaVita provides support through educational resources and financial tools available on the Voya platform.

How does DaVita address the investment options available through its Retirement Savings Plan? Specifically, what guidance is provided to employees regarding the selection of investment funds, and how can employees access information about their investment choices within the DaVita Retirement Savings Plan?

DaVita offers a range of investment options in its Retirement Savings Plan, including target date funds, stock funds, and bond funds. The company provides guidance to employees through the Voya website and customer service center, where they can access detailed information about available investment funds. Employees can tailor their portfolios based on their retirement timeline and risk tolerance, and they are encouraged to review their investment choices regularly.

What are the tax implications of withdrawing funds from the DaVita Retirement Savings Plan, and how can employees prepare for this? How does DaVita provide clarity around the tax obligations faced by employees when they begin to access their retirement savings, particularly for those who are unfamiliar with tax rules relating to retirement distributions?

Withdrawing funds from the DaVita Retirement Savings Plan can have significant tax implications. Withdrawals before age 59½ may incur early withdrawal penalties, and all withdrawals are subject to income tax unless they are from a Roth account. DaVita educates employees on these tax rules through its Voya platform, providing clarity on how to manage taxes when accessing retirement savings. Employees are encouraged to consult tax professionals for specific guidance.

How does DaVita educate its employees about the importance of understanding their retirement plan features? What programs or resources are available for employees to learn about financial wellness and retirement readiness, and how frequently does DaVita conduct educational initiatives related to its Retirement Savings Plan?

DaVita educates its employees on retirement plan features through webinars, financial wellness programs, and resources available on the Voya website. These initiatives focus on retirement readiness, savings strategies, and understanding the investment options within the plan. DaVita regularly updates employees through newsletters, and webinars are conducted periodically to keep employees informed about the plan.

In the event of unexpected financial hardships, what options do DaVita employees have regarding loans or early withdrawals from the DaVita Retirement Savings Plan? What do employees need to know about the process and potential penalties associated with accessing their funds early?

In the case of financial hardships, DaVita employees can take loans or early withdrawals from their Retirement Savings Plan. However, early withdrawals may be subject to penalties and taxes, depending on the circumstances. DaVita's Voya service center provides guidance on the process, explaining the potential costs and consequences. Employees are encouraged to explore alternative solutions before opting for early withdrawals to avoid unnecessary penalties.

What role do employees' personal financial goals play when determining their participation in the DaVita Retirement Savings Plan? How can DaVita assist employees in aligning their savings plan with their individual financial objectives, and what external financial consulting resources might they recommend?

Employees' personal financial goals play a key role in determining their participation in the DaVita Retirement Savings Plan. DaVita helps employees align their retirement savings with their broader financial objectives by offering planning tools and resources on the Voya platform. Additionally, external financial advisors or consulting services may be recommended for those needing personalized financial advice.

How can DaVita employees contact the company for more information regarding the Retirement Savings Plan? What specific channels, such as phone numbers or online resources, are available, and what types of inquiries can employees expect to address when contacting DaVita about their retirement savings?

DaVita employees seeking more information about the Retirement Savings Plan can contact the plan’s service center through the Voya website or by calling the dedicated support line. Customer service representatives are available to assist with inquiries related to contributions, investment options, rollovers, and withdrawals. Online resources and account management tools are also accessible for employees who prefer digital support.

How does DaVita ensure that it stays current with regulatory changes that impact employee retirement savings, particularly with respect to IRS limits set for 2024? What processes does DaVita have in place to update employees about these changes, and how does the company maintain transparency regarding its compliance with retirement regulations?

DaVita ensures it stays up to date with regulatory changes, including IRS contribution limits and distribution rules, through regular collaboration with financial service providers and legal experts. The company updates employees via email, webinars, and its Voya platform when changes occur, maintaining transparency about compliance with retirement regulations and keeping employees informed of any adjustments to the plan.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

DaVita offers its employees a comprehensive retirement savings plan, including a 401(k) with company match. Employees are auto-enrolled in the 401(k) plan, which features a company match that vests over four years. The plan encourages long-term savings by offering diverse investment options and tools for retirement planning. Additionally, DaVita provides a pension plan to eligible employees, though details on the specific pension formula and eligibility criteria are not as prominently highlighted. For further details, you can refer to their benefits overview pages on their official website

DaVita has faced legal challenges regarding its 401(k) plan. A class action lawsuit alleges that the company allowed excessive recordkeeping costs and offered high-fee investment options. Additionally, DaVita agreed to a settlement related to mismanagement claims.

DaVita Inc. offers stock options and Restricted Stock Units (RSUs) as part of its equity compensation program for eligible employees. The company's stock options are generally awarded to senior management and key employees, allowing them to purchase company stock at a set price after a specific vesting period. These stock options typically have a vesting schedule of three to five years and must be exercised within ten years of the grant date. Restricted Stock Units (RSUs) at DaVita are also primarily awarded to senior employees. RSUs provide the right to receive shares of DaVita stock upon vesting, usually after three to four years, depending on the terms of the grant. Unlike stock options, RSUs do not require the employee to purchase the shares; the shares are delivered outright upon vesting. In 2022, 2023, and 2024, DaVita continued to issue stock options and RSUs as part of its long-term incentive plans. These equity awards are designed to align employee interests with those of shareholders and incentivize performance that contributes to the company's success. Stock options and RSUs are granted based on an employee’s role, seniority, and contribution to the company, with top executives receiving the majority of these awards.

DaVita has implemented a comprehensive approach to health benefits for its employees, with a focus on both physical and mental well-being. Between 2022 and 2024, DaVita has been recognized for its strong commitment to employee health, receiving multiple national awards in areas such as mental health and overall well-being. Medical and Prescription Plans: DaVita offers multiple medical insurance options through national carriers like Anthem and Kaiser Permanente, depending on location. The company also provides an extensive prescription plan that includes coverage for over 300 generic medications at no cost. Dental and Vision Plans: Dental coverage includes services ranging from regular cleanings to orthodontics and dentures, while vision coverage extends to eye exams, lenses, and even discounted laser surgery. Mental Health and Wellness: DaVita places a significant emphasis on mental health, offering programs like the Vitality Points incentive program to promote regular health check-ins. The company also collaborates with Included Health to support LGBTQ+ employees and offers free access to the Headspace app for guided meditation and mindfulness. Specialty Health Programs: DaVita has introduced virtual physical therapy options and a weight loss support program designed to help employees maintain a healthy lifestyle. There is also a focus on supporting diverse employee needs through surrogacy, adoption, and fertility services, as well as backup care for children and the elderly. Recent Developments and Employee Support: DaVita has actively enhanced its wellness initiatives by introducing programs such as Project Reignite, which provides resources like counseling sessions and self-care tips. Additionally, the company continues to focus on holistic care, ensuring that employees, referred to as "teammates," receive support that covers both their professional development and personal health needs. DaVita's dedication to these areas has not only earned it industry recognition but has also fostered a culture where employee well-being is a priority.

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For more information you can reach the plan administrator for DaVita at 2000 16th St Denver, CO 80202; or by calling them at (303) 405-2100.

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