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Healthcare Provider Update: Healthcare Provider for ON Semiconductor ON Semiconductor partners with various health insurance providers to administer employee healthcare benefits. While the specific provider may vary based on location and employee needs, large national insurers such as UnitedHealthcare and Anthem BlueCross BlueShield are often utilized by companies of ON Semiconductor's size. This partnership emphasizes ON Semiconductor's commitment to providing comprehensive healthcare benefits to its workforce. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, ON Semiconductor, along with other companies, may face substantial increases in healthcare costs due to anticipated record hikes in premiums for Affordable Care Act (ACA) marketplace plans. Reports indicate that some states could experience premium increases over 60%, driven by factors such as rising medical costs and the potential expiration of enhanced federal premium subsidies. This perfect storm of challenges is expected to push out-of-pocket premiums up by 75% or more for a significant number of enrollees, thereby amplifying the financial burden on employers and employees alike. Companies like ON Semiconductor will need to prepare for these increased costs in their healthcare budgets, particularly as the healthcare landscape continues to evolve dramatically. Click here to learn more
Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a ON Semiconductor-sponsored plan. You may also gain more investment options than what may have been available in your ON Semiconductor-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 ON Semiconductor-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 ON Semiconductor should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a ON Semiconductor-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 ON Semiconductor-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 ON Semiconductor.
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 ON Semiconductor 401(k) plan?
The ON Semiconductor 401(k) plan is a retirement savings plan that allows employees to save for retirement through pre-tax contributions, with the option for after-tax contributions as well.
How can I enroll in the ON Semiconductor 401(k) plan?
Employees can enroll in the ON Semiconductor 401(k) plan by accessing the enrollment portal through the company’s HR website or by contacting the HR department for assistance.
What is the employer match for the ON Semiconductor 401(k) plan?
ON Semiconductor offers a competitive employer matching contribution to the 401(k) plan, which typically matches a percentage of employee contributions, up to a certain limit.
At what age can I start contributing to the ON Semiconductor 401(k) plan?
Employees can start contributing to the ON Semiconductor 401(k) plan as soon as they meet the eligibility requirements, which generally begin upon employment.
Can I change my contribution amount to the ON Semiconductor 401(k) plan?
Yes, employees can change their contribution amount to the ON Semiconductor 401(k) plan at any time by accessing their account online or by contacting HR.
Does ON Semiconductor offer a Roth 401(k) option?
Yes, ON Semiconductor offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.
What investment options are available in the ON Semiconductor 401(k) plan?
The ON Semiconductor 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
When can I access my ON Semiconductor 401(k) funds?
Employees can access their ON Semiconductor 401(k) funds upon reaching retirement age, or in certain circumstances such as financial hardship, termination of employment, or other qualifying events.
Is there a vesting schedule for the ON Semiconductor 401(k) employer match?
Yes, ON Semiconductor has a vesting schedule for the employer match, meaning employees must work for a certain period before they fully own the matching contributions.
How do I check my balance in the ON Semiconductor 401(k) plan?
Employees can check their balance in the ON Semiconductor 401(k) plan by logging into their account on the plan's administrative website or through the mobile app.
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