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Healthcare Provider Update: Dover Healthcare Provider Information: Dover typically has partnerships with a range of healthcare providers, but the core partnership often includes healthcare networks and insurance plans like UnitedHealthcare, which offers a variety of coverage options for employees. In many cases, the specifics of the healthcare providers may depend on the region and the employees' selected insurance plans. Potential Healthcare Cost Increases in 2026: As the landscape of healthcare financing evolves, 2026 is poised to bring significant premium hikes for Affordable Care Act (ACA) insurance plans. Insurers are anticipating increases averaging 20% nationally, with some states reporting spikes over 60%. The expiration of enhanced federal subsidies is a critical driver behind the expected surge, potentially resulting in over 75% increases in out-of-pocket costs for many enrollees. This scenario creates a daunting challenge for consumers, as they navigate shifting financial responsibilities amidst rising medical costs. Planning and proactive health management in 2025 will be essential to mitigate the effects of these impending increases. Click here to learn more
Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Dover-sponsored plan. You may also gain more investment options than what may have been available in your Dover-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.
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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 Dover-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 Dover should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Dover-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 Dover-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 Dover.
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 primary purpose of Dover's 401(k) Savings Plan?
The primary purpose of Dover's 401(k) Savings Plan is to help employees save for retirement by offering tax-advantaged savings options.
How can employees enroll in Dover's 401(k) Savings Plan?
Employees can enroll in Dover's 401(k) Savings Plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.
Does Dover match employee contributions to the 401(k) Savings Plan?
Yes, Dover offers a matching contribution to employee contributions made to the 401(k) Savings Plan, up to a certain percentage.
What types of contributions can employees make to Dover's 401(k) Savings Plan?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also have the option for catch-up contributions if they are age 50 or older.
When can employees start contributing to Dover's 401(k) Savings Plan?
Employees can start contributing to Dover's 401(k) Savings Plan after completing the eligibility requirements, which are outlined in the plan documents.
What is the vesting schedule for Dover's 401(k) Savings Plan?
The vesting schedule for Dover's 401(k) Savings Plan determines how much of the company’s matching contributions employees are entitled to keep based on their years of service.
Can employees take loans against their 401(k) savings at Dover?
Yes, Dover allows employees to take loans against their 401(k) savings, subject to the terms and conditions outlined in the plan.
What investment options are available in Dover's 401(k) Savings Plan?
Dover's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
How often can employees change their contribution amounts for Dover's 401(k) Savings Plan?
Employees can change their contribution amounts to Dover's 401(k) Savings Plan at any time, subject to the plan's rules and regulations.
What resources are available to help employees manage their 401(k) at Dover?
Dover provides various resources, including access to financial advisors, educational materials, and online tools to help employees manage their 401(k) savings effectively.
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