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 West Pharmaceutical Services Employee?

Healthcare Provider Update: West Pharmaceutical Services: Healthcare Provider West Pharmaceutical Services is a global leader in the development and manufacturing of innovative delivery systems for injectable drugs and healthcare solutions. The company serves various sectors including pharmaceutical, biotechnology, and medical device industries. As a prominent entity in this space, they work with numerous healthcare providers to ensure their products meet the stringent requirements needed for safe and effective patient care. Potential Healthcare Cost Increases in 2026 Healthcare costs for West Pharmaceutical Services employees are expected to rise considerably in 2026, influenced by several market dynamics. Record increases in Affordable Care Act (ACA) premiums could pressure employers to shift more costs onto employees, potentially increasing out-of-pocket expenses significantly. Approximately 51% of large employers are anticipated to adjust their healthcare benefits by raising deductibles and out-of-pocket maximums. This, combined with soaring medical costs driven by inflation and high drug prices, will likely increase financial burdens on employees, making 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 West Pharmaceutical Services-sponsored plan. You may also gain more investment options than what may have been available in your West Pharmaceutical 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 West Pharmaceutical 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 West Pharmaceutical Services should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a West Pharmaceutical 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 West Pharmaceutical 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 West Pharmaceutical 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 types of contributions can I make to the West Pharmaceutical Services 401(k) plan?

Employees of West Pharmaceutical Services can make pre-tax and Roth (after-tax) contributions to the 401(k) plan.

Does West Pharmaceutical Services offer a company match for the 401(k) contributions?

Yes, West Pharmaceutical Services provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

When can I enroll in the West Pharmaceutical Services 401(k) plan?

Employees can enroll in the West Pharmaceutical Services 401(k) plan during the initial enrollment period upon hire or during the annual open enrollment period.

What is the vesting schedule for the West Pharmaceutical Services 401(k) company match?

The vesting schedule for the company match at West Pharmaceutical Services typically follows a graded vesting schedule over a period of three to five years.

Can I take a loan against my 401(k) with West Pharmaceutical Services?

Yes, West Pharmaceutical Services allows participants to take loans against their 401(k) balance, subject to plan rules and limits.

What investment options are available in the West Pharmaceutical Services 401(k) plan?

The West Pharmaceutical Services 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and stable value funds.

How can I access my West Pharmaceutical Services 401(k) account information?

Employees can access their 401(k) account information through the West Pharmaceutical Services online portal or by contacting the plan administrator.

Are there any fees associated with the West Pharmaceutical Services 401(k) plan?

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

What happens to my 401(k) if I leave West Pharmaceutical Services?

If you leave West Pharmaceutical Services, you can roll over your 401(k) balance to another qualified plan, cash it out (subject to taxes and penalties), or leave it in the West plan if you meet certain criteria.

Does West Pharmaceutical Services offer financial education resources for 401(k) participants?

Yes, West Pharmaceutical Services provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.