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 Public Storage Employee?

Healthcare Provider Update: Public Storage offers its employees health insurance options through the Affordable Care Act (ACA) marketplace as well as employer-sponsored plans. The specific healthcare providers utilized may vary, often including major insurers such as UnitedHealthcare and Anthem, which have strong presences in many states. As we approach 2026, significant increases in healthcare costs are anticipated, particularly for those enrolled in ACA marketplace plans. Projections suggest that average premiums could rise by approximately 18%, with certain states potentially experiencing hikes over 60%. The expected expiration of enhanced federal premium subsidies will largely contribute to these sharp increases, meaning many Public Storage employees and retirees could face drastic out-of-pocket costs. As the market grapples with rising medical expenses and insurer rate hikes, individuals should be prepared for a challenging landscape in healthcare costs as they plan for the upcoming year. Click here to learn more

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

Internal management fees might be higher than in a Public Storage-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 Public Storage-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 Public Storage.

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 type of retirement savings plan does Public Storage offer to its employees?

Public Storage offers a 401(k) retirement savings plan to help employees save for retirement.

Does Public Storage match employee contributions to the 401(k) plan?

Yes, Public Storage provides a matching contribution to employee 401(k) contributions, subject to certain limits.

When can employees at Public Storage enroll in the 401(k) plan?

Employees at Public Storage can enroll in the 401(k) plan during their initial eligibility period or during the annual open enrollment period.

What is the eligibility requirement for Public Storage employees to participate in the 401(k) plan?

To participate in the 401(k) plan at Public Storage, employees must meet specific service and age requirements as outlined in the plan documents.

How can Public Storage employees make changes to their 401(k) contributions?

Public Storage employees can make changes to their 401(k) contributions by logging into the employee benefits portal or by contacting the HR department.

What investment options are available in the Public Storage 401(k) plan?

The Public Storage 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can Public Storage employees take loans against their 401(k) savings?

Yes, Public Storage allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.

What happens to my 401(k) account if I leave Public Storage?

If you leave Public Storage, you can choose to roll over your 401(k) balance to another retirement account, cash out your account, or leave it in the Public Storage plan if you meet the minimum balance requirement.

Are there any fees associated with the Public Storage 401(k) plan?

Yes, there may be administrative fees and investment-related expenses associated with the Public Storage 401(k) plan, which are disclosed in the plan documents.

How often can Public Storage employees change their investment allocations within the 401(k) plan?

Public Storage employees can change their investment allocations at any time, subject to the plan's trading restrictions.

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

401(k) plan with company match, discretionary profit sharing, stock purchase plan.

Public Storage provides RSUs to its executives and key employees. RSUs typically vest over a period of three years, promoting retention and alignment with company goals.