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 Option Care Health Employee?

Healthcare Provider Update: Offers comprehensive medical, dental, and vision benefits to employees working 30+ hours/week, with HSA contributions up to $1,000 annually 1. As ACA premiums rise and subsidies expire, Option Cares employer-sponsored plans and HSA support offer a more affordable and tax-advantaged alternative to marketplace coverage. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Option Care Health-sponsored plan. You may also gain more investment options than what may have been available in your Option Care Health-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.'

brown rocky mountain beside blue sea during daytime

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 Option Care Health-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 Option Care Health should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Option Care Health-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 Option Care Health-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 Option Care Health.

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

Featured Video

Articles you may find interesting:

What is the 401(k) plan offered by Option Care Health?

The 401(k) plan at Option Care Health is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can employees enroll in the 401(k) plan at Option Care Health?

Employees can enroll in the Option Care Health 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Option Care Health offer a company match for the 401(k) contributions?

Yes, Option Care Health offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.

What is the vesting schedule for the company match at Option Care Health?

The vesting schedule for the company match at Option Care Health typically follows a graded vesting schedule, meaning employees earn rights to the company contributions over a period of time.

Can employees change their contribution percentage to the 401(k) plan at Option Care Health?

Yes, employees at Option Care Health can change their contribution percentage at any time, subject to the plan’s rules and limits.

What investment options are available in the Option Care Health 401(k) plan?

The Option Care Health 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a loan option available for the 401(k) plan at Option Care Health?

Yes, Option Care Health allows employees to take loans against their 401(k) balance under certain conditions, providing a way to access funds if needed.

What happens to my 401(k) account if I leave Option Care Health?

If you leave Option Care Health, you have several options for your 401(k) account, including rolling it over to a new employer’s plan, an IRA, or cashing it out, though cashing out may incur taxes and penalties.

How often can employees contribute to the 401(k) plan at Option Care Health?

Employees can contribute to the Option Care Health 401(k) plan with each paycheck, allowing for consistent savings throughout the year.

Are there any fees associated with the 401(k) plan at Option Care Health?

Yes, like most 401(k) plans, the Option Care Health 401(k) may have administrative fees and investment fees, which are disclosed in the plan documents.