New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

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

Healthcare Provider Update: Healthcare Provider for Dell Technologies Dell Technologies provides its employees with healthcare coverage through a variety of plans. The primary healthcare provider associated with Dell is UnitedHealthcare, which offers comprehensive health insurance options to Dell employees, focusing on coverage that fits a range of healthcare needs. Healthcare Cost Increases in 2026 As Dell Technologies employees prepare for 2026, they should anticipate significant increases in healthcare costs driven by rising ACA marketplace premiums. Many states are projecting steep hikes, with some rates soaring over 60%. Key factors behind this surge include the potential expiration of enhanced federal subsidies, escalating medical inflation, and considerable rate increases from major insurers. For Dell employees, these challenges may lead to a greater share of healthcare expenses, warranting a proactive approach in reviewing benefits and planning for the financial implications of these changes. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Dell Technologies-sponsored plan. You may also gain more investment options than what may have been available in your Dell Technologies-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 Dell Technologies-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 Dell Technologies should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Dell Technologies-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 Dell Technologies-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 Dell Technologies.

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 is the Dell Technologies 401(k) Savings Plan?

The Dell Technologies 401(k) Savings Plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or after-tax basis.

How can I enroll in the Dell Technologies 401(k) Savings Plan?

Employees can enroll in the Dell Technologies 401(k) Savings Plan through the employee benefits portal or by contacting the HR department for assistance.

What types of contributions can I make to the Dell Technologies 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, in some cases, catch-up contributions if they are age 50 or older.

Does Dell Technologies offer a company match for the 401(k) Savings Plan?

Yes, Dell Technologies provides a company match on employee contributions to the 401(k) Savings Plan, which helps employees save more for retirement.

What is the vesting schedule for the Dell Technologies company match in the 401(k) Savings Plan?

The vesting schedule for the company match in the Dell Technologies 401(k) Savings Plan typically follows a graded vesting schedule over a period of years.

Can I take a loan from my Dell Technologies 401(k) Savings Plan?

Yes, Dell Technologies allows employees to take loans from their 401(k) Savings Plan, subject to certain terms and conditions.

What investment options are available in the Dell Technologies 401(k) Savings Plan?

The Dell Technologies 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can I change my contribution amount to the Dell Technologies 401(k) Savings Plan?

Employees can change their contribution amount to the Dell Technologies 401(k) Savings Plan at any time, typically through the employee benefits portal.

What happens to my Dell Technologies 401(k) Savings Plan if I leave the company?

If you leave Dell Technologies, you have several options for your 401(k) Savings Plan, including rolling it over to an IRA or a new employer’s plan, or cashing it out (though this may have tax implications).

Is there a minimum contribution requirement for the Dell Technologies 401(k) Savings Plan?

Yes, Dell Technologies may have a minimum contribution requirement for participation in the 401(k) Savings Plan, which is typically outlined in the plan documents.

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

Dell Technologies provides a 401(k) plan with a generous company match. Employees have access to a range of investment options and financial planning resources.

Dell Technologies grants RSUs to its executives and key employees. RSUs vest over a period of three to four years, aligning employee interests with company success.

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For more information you can reach the plan administrator for Dell Technologies at One Dell Way Round Rock, TX 78682; or by calling them at (512) 338-4400.