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 Universal Health Services Employee?

Healthcare Provider Update: Healthcare Provider for Universal Health Services: Universal Health Services, Inc. (UHS) operates as one of the largest healthcare providers in the United States, managing a vast network of over 400 acute care hospitals and behavioral health facilities. It offers various services across both sectors, catering to a diverse range of medical needs. Potential Healthcare Cost Increases in 2026: In 2026, Universal Health Services employees may face significant increases in healthcare costs, as various external factors continue to exert pressure on the insurance market. With anticipated record premium hikes in the Affordable Care Act (ACA) marketplace-some states reporting increases over 60%-if existing enhanced federal subsidies expire, over 22 million enrollees could see their out-of-pocket premiums surge by as much as 75%. Concurrently, rising medical costs driven by surges in hospital and pharmaceutical expenses will likely compel employers, including UHS, to adjust their benefit structures, potentially shifting more financial responsibility onto employees. This convergence of forces makes 2026 a pivotal year for healthcare affordability. Click here to learn more

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

Internal management fees might be higher than in a Universal Health Services-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 Universal Health Services-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 Universal Health Services.

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 401(k) plan offered by Universal Health Services?

The 401(k) plan at Universal Health Services is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax basis, helping them prepare for retirement.

Who is eligible to participate in the Universal Health Services 401(k) plan?

Employees of Universal Health Services who meet specific criteria, such as age and length of service, are eligible to participate in the 401(k) plan.

How does Universal Health Services match employee contributions to the 401(k) plan?

Universal Health Services offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.

Can employees of Universal Health Services make changes to their 401(k) contributions?

Yes, employees of Universal Health Services can adjust their contribution amounts or change their investment options at any time, subject to plan rules.

What investment options are available in the Universal Health Services 401(k) plan?

The Universal Health Services 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

When can employees of Universal Health Services start withdrawing from their 401(k) accounts?

Employees of Universal Health Services can typically begin withdrawing from their 401(k) accounts without penalty after reaching age 59½, with certain exceptions.

Does Universal Health Services provide educational resources for employees regarding their 401(k) plan?

Yes, Universal Health Services offers educational resources, including workshops and online tools, to help employees understand their 401(k) plan and make informed decisions.

What happens to the 401(k) plan if an employee leaves Universal Health Services?

If an employee leaves Universal Health Services, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the Universal Health Services plan if allowed.

Are there any fees associated with the Universal Health Services 401(k) plan?

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

How can employees of Universal Health Services access their 401(k) account information?

Employees can access their 401(k) account information through the Universal Health Services employee portal or by contacting the plan administrator.