Healthcare Provider Update: Healthcare Provider for SVB Financial Group SVB Financial Group primarily partners with Anthem Blue Cross Blue Shield as their healthcare provider for employee medical benefits. This partnership enables the company to offer comprehensive health insurance options, which are crucial for their workforce's health and well-being. Potential Healthcare Cost Increases in 2026 In 2026, employees of SVB Financial Group may face significant increases in healthcare costs, with a projected rise in Affordable Care Act (ACA) marketplace premiums of up to 66% in some states. These increases are driven by escalating medical costs and the potential expiration of enhanced federal premium subsidies, which could result in a staggering 75% hike in out-of-pocket costs for many consumers. Additionally, employers like SVB Financial Group might shift more healthcare expenses to employees, making it imperative for workers to carefully review their health benefits and consider strategic decisions to navigate these rising costs effectively., 'sources': [], 'images': [] Click here to learn more
If you work for SVB Financial Group, it's imperative to consider one of the common threads of a mobile workforce. Many individuals who leave their job are faced with a decision about what to do with their 401(k) account.
Individuals have four choices with the 401(k) account they accrued at a previous employer.
Choice 1: Leave It with Your Previous Employer
For SVB Financial Group employees, you may choose to do nothing and leave your account in your previous employer’s 401(k) plan. However, if your account balance is under a certain amount, be aware that your ex-employer may elect to distribute the funds to you.
As an employee of SVB Financial Group, there may be reasons to keep your 401(k) with your previous employer —such as investments that are low cost or have limited availability outside of the plan. Other reasons are to maintain certain creditor protections that are unique to qualified retirement plans, or to retain the ability to borrow from it, if the plan allows for such loans to ex-employees.
The primary downside for SVB Financial Group employees are that individuals can become disconnected from the old account and pay less attention to the ongoing management of its investments.
Choice 2: Transfer to Your New Employer’s 401(k) Plan
Provided your current SVB Financial Group employer’s 401(k) accepts the transfer of assets from a pre-existing 401(k), you may want to consider moving these assets to your new plan.
The primary benefits to transferring are the convenience of consolidating your assets, retaining their strong creditor protections, and keeping them accessible via the plan’s loan feature.
If the new plan has a competitive investment menu, many individuals prefer to transfer their account and make a full break with their former employer.
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Choice 3: Roll Over Assets to a Traditional Individual Retirement Account (IRA)
Another choice for those in SVB Financial Group is to roll assets over into a new or existing traditional IRA. It’s possible that a traditional IRA may provide some investment choices that may not exist in your new 401(k) plan.
The drawback to this approach may be less creditor protection and the loss of access to these funds via a 401(k) loan feature.
Remember, don’t feel rushed into making a decision. You have time to consider your choices and may want to seek professional guidance to answer any questions you may have.
Choice 4: Cash out the account
The last choice for those in SVB Financial Group is to simply cash out of the account. However, if you choose to cash out, you may be required to pay ordinary income tax on the balance plus a 10% early withdrawal penalty if you are under age 59½. In addition, employers may hold onto 20% of your account balance to prepay the taxes you’ll owe.
Think carefully before deciding to cash out a retirement plan. Aside from the costs of the early withdrawal penalty, there’s an additional opportunity cost in taking money out of an account that could potentially grow on a tax-deferred basis. For example, taking $10,000 out of a 401(k) instead of rolling over into an account earning an average of 8% in tax-deferred earnings could leave you $100,000 short after 30 years.
- In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty.
FINRA.org, 2022
- Those in SVB Financial Group must acknowledge how an unpaid 401(k) loan is deemed a distribution, subject to income taxes and a 10% tax penalty if the account owner is under 59½. If the account owner switches jobs or gets laid off, any outstanding 401(k) loan balance becomes due by the time the person files his or her federal tax return.
- For SVB Financial Group employees, in most circumstances, once you reach age 73, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA). Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. You may continue to contribute to a Traditional IRA past age 70½ as long as you meet the earned-income requirement.
- This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments.
What type of retirement plan does SVB Financial Group offer to its employees?
SVB Financial Group offers a 401(k) retirement plan to help employees save for their future.
How can employees of SVB Financial Group enroll in the 401(k) plan?
Employees of SVB Financial Group can enroll in the 401(k) plan through the company’s HR portal during the open enrollment period or when they first become eligible.
Does SVB Financial Group provide any matching contributions to the 401(k) plan?
Yes, SVB Financial Group offers matching contributions to the 401(k) plan, which helps employees to increase their retirement savings.
What is the maximum contribution limit for the 401(k) plan at SVB Financial Group?
The maximum contribution limit for the 401(k) plan at SVB Financial Group follows the IRS guidelines, which are updated annually.
Can employees of SVB Financial Group take loans against their 401(k) savings?
Yes, SVB Financial Group allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.
What investment options are available in the SVB Financial Group 401(k) plan?
The SVB Financial Group 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.
Is there a vesting schedule for the employer contributions in the SVB Financial Group 401(k) plan?
Yes, there is a vesting schedule for employer contributions in the SVB Financial Group 401(k) plan, which determines when employees fully own those contributions.
How can employees of SVB Financial Group access their 401(k) account information?
Employees of SVB Financial Group can access their 401(k) account information online through the designated retirement plan website.
What happens to the 401(k) plan when an employee leaves SVB Financial Group?
When an employee leaves SVB Financial Group, they have several options for their 401(k) plan, including rolling it over to a new employer’s plan or an IRA.
Can employees of SVB Financial Group change their contribution amounts to the 401(k) plan?
Yes, employees of SVB Financial Group can change their contribution amounts to the 401(k) plan at any time, subject to plan rules.