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Meritage Homes Employees: Navigating the Complexities of Extended Care Costs in Retirement

Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Meritage Homes employees who are developing a retirement strategy.

Seven in ten Meritage Homes employees over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.

What Is Extended Care?

Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.

How Much Does Extended Care Cost?

Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.

What Are the Payment Choices?

Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.

Meritage Homes employees who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.

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Many self-insure by default – simply because they haven't made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.

GenWorth.com, 2022

ACL.gov, 2022

What type of retirement plan does Meritage Homes offer to its employees?

Meritage Homes offers a 401(k) retirement savings plan to help employees save for their future.

Does Meritage Homes match employee contributions to the 401(k) plan?

Yes, Meritage Homes provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

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

Employees of Meritage Homes are eligible to participate in the 401(k) plan after completing a specified period of employment, typically 30 days.

Can employees at Meritage Homes choose how their 401(k) contributions are invested?

Yes, employees at Meritage Homes can select from a variety of investment options within the 401(k) plan to suit their individual risk tolerance and retirement goals.

What is the maximum employee contribution limit to the Meritage Homes 401(k) plan?

The maximum employee contribution limit to the Meritage Homes 401(k) plan is determined by IRS guidelines, which may change annually.

Are there any fees associated with the Meritage Homes 401(k) plan?

Yes, like most 401(k) plans, the Meritage Homes 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

How often can employees at Meritage Homes change their contribution amounts to the 401(k) plan?

Employees at Meritage Homes can change their contribution amounts to the 401(k) plan during designated enrollment periods or as allowed by the plan.

Does Meritage Homes offer a loan option against the 401(k) savings?

Yes, Meritage Homes allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What happens to my 401(k) savings if I leave Meritage Homes?

If you leave Meritage Homes, you can roll over your 401(k) savings into another qualified retirement account, cash out, or leave the funds in the Meritage Homes plan if allowed.

Is there a vesting schedule for the employer match in the Meritage Homes 401(k) plan?

Yes, the employer match in the Meritage Homes 401(k) plan typically follows a vesting schedule, which means employees must work for a certain period to fully own the matched funds.

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

Name of Plan: Information not found for a specific pension plan. Eligibility: Meritage Homes does not appear to offer a traditional pension plan. They may rely on alternative retirement benefits, such as 401(k) plans. Pension Formula: Not applicable. Years of Service/Age Qualification: Not applicable. Name of Plan: Meritage Homes 401(k) Plan Eligibility: Typically, employees are eligible to participate in the 401(k) plan upon hire or after a short waiting period. Specific eligibility details may vary based on employment agreements. 401(k) Plan Details: Contribution: Employees can contribute a portion of their salary to the plan, often with company match contributions. Company Match: Meritage Homes may provide a matching contribution based on employee contributions. Vesting Schedule: Employees typically become vested in the employer contributions after a certain number of years of service.

Restructuring and Layoffs: In 2023, Meritage Homes announced a strategic restructuring aimed at streamlining operations to improve efficiency. The company reduced its workforce by approximately 5%, primarily affecting administrative and support roles. This decision was driven by the need to adapt to changing market conditions and to optimize operational costs. Addressing this news is crucial given the current economic environment, where companies are continually adjusting their structures to remain competitive. Additionally, the impact of such layoffs can influence the overall job market and employee morale.

Stock Options: Meritage Homes granted stock options as part of their employee compensation package. These options were primarily available to executives and senior management. Specific details and eligibility criteria were outlined in their 2022 annual report, which can be found on page 58 of the document. RSUs: Restricted Stock Units (RSUs) were also a component of Meritage Homes’ compensation strategy. RSUs were allocated to a broader group of employees, including middle management. The specifics regarding the RSU grants were detailed on page 60 of the 2022 annual report.

Healthcare Coverage Changes (2024): Recent reports indicate that Meritage Homes has updated its healthcare plans to include more comprehensive mental health services and preventive care options. There is a focus on improving wellness benefits and access to telehealth services. Employee Feedback: Employees have reported positive changes in healthcare benefits, particularly noting improvements in the availability of telehealth services and mental health support.