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 Xcel Energy Employee?

Healthcare Provider Update: Healthcare Provider for Xcel Energy Xcel Energy primarily collaborates with UnitedHealthcare to provide healthcare benefits for its employees. This partnership allows Xcel Energy to offer a range of health plans that cater to the diverse needs of its workforce. Potential Healthcare Cost Increases for Xcel Energy in 2026 Looking ahead to 2026, Xcel Energy employees should be prepared for significant healthcare cost increases as industry trends suggest substantial premium hikes. Reports indicate that some states may see ACA marketplace premiums soar by over 60%. In addition to this, employers like Xcel Energy may shift more costs to employees, with many anticipated to increase deductibles or coinsurance due to rising medical expenses. As the market braces for these changes, it becomes essential for employees to stay informed about benefit adjustments, optimize their healthcare plan choices, and explore proactive financial strategies to mitigate the impact of these increased costs. Click here to learn more

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

Internal management fees might be higher than in a Xcel Energy-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 Xcel Energy-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 Xcel Energy.

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 retirement savings options does Xcel Energy offer to its employees?

Xcel Energy offers a 401(k) Savings Plan that allows employees to save for retirement through pre-tax and Roth after-tax contributions.

How does Xcel Energy match employee contributions to the 401(k) plan?

Xcel Energy provides a matching contribution to the 401(k) plan, which is based on a percentage of the employee's contributions, helping to enhance retirement savings.

What is the eligibility requirement for Xcel Energy's 401(k) Savings Plan?

Employees are eligible to participate in Xcel Energy's 401(k) Savings Plan after completing a specified period of employment, typically within the first year.

Can employees at Xcel Energy contribute to their 401(k) plan while on leave?

Yes, employees can continue to contribute to their 401(k) plan while on certain types of leave, depending on the specific circumstances and plan rules.

What investment options are available in Xcel Energy's 401(k) Savings Plan?

Xcel Energy's 401(k) Savings Plan offers a variety of investment options, including target-date funds, stock funds, bond funds, and stable value funds.

Is there a vesting schedule for the employer match in Xcel Energy's 401(k) plan?

Yes, Xcel Energy has a vesting schedule for the employer match, meaning employees must work for the company for a certain period to fully own the matched contributions.

How can Xcel Energy employees access their 401(k) account information?

Employees can access their 401(k) account information through the Xcel Energy benefits portal or by contacting the plan administrator directly.

What is the maximum contribution limit for Xcel Energy's 401(k) plan?

The maximum contribution limit for Xcel Energy's 401(k) plan is subject to IRS regulations, which are updated annually. Employees should check the current limits for accurate figures.

Does Xcel Energy offer a loan option against the 401(k) plan?

Yes, Xcel Energy allows employees to take loans against their 401(k) savings, subject to certain conditions and limits as outlined in the plan documents.

What happens to my 401(k) savings if I leave Xcel Energy?

If you leave Xcel Energy, you can choose to roll over your 401(k) savings to another retirement account, leave it in the Xcel Energy plan (if eligible), or withdraw the funds, subject to taxes and penalties.

Additional Articles

Check Out Articles for Xcel Energy employees

For more information you can reach the plan administrator for Xcel Energy at 414 Nicollet Mall Minneapolis, MN 55401; or by calling them at 612-330-5500.