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Delaying the Rollover of Your Bristol-Myers Squibb 401k Could Cost You $76K, Study Finds

Healthcare Provider Update: Healthcare Provider for Bristol-Myers Squibb Bristol-Myers Squibb collaborates with multiple healthcare providers, including major national health insurers and pharmacy benefit managers (PBMs) like CVS Caremark and Express Scripts, to ensure patient access to their medications. Their widespread distribution network encompasses hospitals, clinics, and specialty pharmacies, enabling healthcare professionals to prescribe and dispense their pharmaceutical products effectively. Potential Healthcare Cost Increases in 2026 As we look toward 2026, healthcare consumers should brace for significant cost increases stemming from a combination of factors. Record hikes in premiums for Affordable Care Act (ACA) marketplace plans are anticipated, with some states facing increases over 60% due to higher medical costs and the potential expiration of federal premium subsidies. Reports indicate that nearly 92% of marketplace enrollees could see their out-of-pocket premiums soar by over 75%, putting immense financial strain on families. Coupled with escalating hospital and drug prices, particularly specialty medications like GLP-1 weight loss drugs, the burden of rising healthcare expenses is likely to affect millions as they navigate their insurance options and healthcare needs. Click here to learn more

'Delaying the rollover of a 401k from one employer to another may seem like a minor issue, but even small delays can result in significant financial losses over time, making it critical for Bristol-Myers Squibb employees to act quickly and select a provider who prioritizes efficiency and digital solutions.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Bristol-Myers Squibb employees should recognize that a timely 401k rollover not only mitigates missed growth opportunities but also helps safeguard against added fees and penalties, underscoring the importance of swift action and selecting a reliable provider.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The impact of delays on 401k rollovers and potential financial losses.
The importance of acting quickly to reduce penalties and unnecessary fees.
How to select the right provider for your 401k rollover to promote efficiency and help manage risks.

The rollover of a Bristol-Myers Squibb 401k to a new employer plan still requires a multi-step process that can involve mail-based transactions, which can cause significant delays, even with the growing digitization of financial activities. Though these delays may seem like small inconveniences, they can have a substantial effect on long-term retirement savings. Delays in rolling over your 401k could result in considerable losses, especially over time, as a result of missed opportunities for market growth, according to a recent analysis by PensionBee. ¹

Delays in rollover could result in lost returns of $76,000.

Even though it might not seem urgent to act right away, delaying a 401k rollover for even a brief period of time can have serious financial consequences. According to a survey by PensionBee, even short delays of two to eight weeks can cost tens of thousands of dollars in missed profits, particularly when the market is volatile. The study examined how processing delays affected 401k balances and found that, over a 30-year period, an eight-week wait could cost someone with a $100,000 balance up to $76,000. Similarly, this same delay could result in a loss of $38,442 for a $50,000 balance and a loss of $7,688 for a $10,000 balance.

Even brief delays can make a difference. Over a 30-year period, a Bristol-Myers Squibb employee with a $100,000 401k balance could potentially lose $37,512 due to a two-week wait. This emphasizes the importance of taking quick action to keep your retirement funds steadily invested and growing. Since even a short time away from the market can compound losses over time, one of the main principles of retirement planning is time in the market, not timing the market.

The Dangers of Postponing Your Bristol-Myers Squibb 401k Rollover

Whether you are just starting work with Bristol-Myers Squibb, or leaving the company for a new job or retirement, delaying your 401k rollover can come with financial consequences that extend beyond missed profits. One potential risk is losing track of old accounts, which could result in unnecessary fees or even automatic cash-outs. Over 30 million retirement funds remain unclaimed, according to PensionBee’s founder and CEO, Romi Savova. Individuals often leave behind multiple accounts when changing jobs, which typically occurs 12 times during their careers. Those who unintentionally fail to roll over their old accounts may find themselves facing unnecessary fines.

Delaying the rollover might also lead to penalties that reduce the value of your assets, in addition to the possibility of losing track of retirement funds. While Bristol-Myers Squibb might cover some of your 401k expenses during employment, these obligations typically transfer to the account holder after you leave the company. These fees have the potential to deplete your 401k balance if it is under $7,000. Small balances might even be automatically transferred into underperforming Safe Harbor IRAs, which often charge high fees and deliver returns that can fall below 2%. Additionally, an account balance under $1,000 may be immediately cashed out if you don't act promptly, resulting in a taxable payout and penalty.

Ways to Speed Up the Rollover Process

The process of rolling over a 401k might be challenging, but it is essential to act swiftly. Bristol-Myers Squibb employees should manage their rollovers proactively to reduce the risk of delays and the resulting financial consequences. Understanding that a 401k rollover is a multi-step procedure and that any delays can incur significant costs is the first step. Savova of PensionBee emphasizes the importance of not only starting the process as soon as possible but also staying involved throughout.

Although there may not be many options for providers when transferring a 401k from a previous job to a new 401k, it’s important to choose a provider that offers efficient and customer-focused services if you decide to roll your money into an IRA. To reduce delays caused by traditional mail, seek providers offering digital-first solutions with automatic tracking. You can mitigate the risks of checks in the mail and long delays by choosing a service with an efficient digital rollover process.

Moreover, customer service quality is crucial. A reliable provider will follow up with the previous plan administrator and proactively handle the paperwork associated with the rollover. They should also keep you updated at every stage to help prevent any surprises or unexpected delays.

Selecting the Right Provider for Your Bristol-Myers Squibb 401k Rollover

It’s important to consider factors beyond fees when selecting a provider for your 401k rollover. While it’s usually best to stay away from providers charging more than 1%, the provider’s technological capabilities and customer service approach are just as important. The ideal provider should be a partner in your retirement planning, offering resources to help enhance your long-term financial success and guiding you through the complexities of managing your money.

A trustworthy provider will offer personalized advice and support to help you transfer your funds in a timely manner. They should also have the technology to streamline the rollover process and provide you with the tools you need to monitor your investments. Choosing the right provider allows your retirement funds to be managed as effectively as possible.

Bottom Line

Delaying a 401k rollover as a new or former Bristol-Myers Squibb employee can have financial repercussions, such as missed returns and unnecessary fees. Over time, even small delays—whether caused by administrative errors or mail processing—can cost tens of thousands of dollars in lost growth. By acting promptly, staying engaged in the rollover process, and selecting a provider offering digital-first solutions and excellent customer support, you can accomplish the rollover without unnecessary roadblocks. Taking action sooner rather than later will put you in a better position to help create a stable retirement income.

Delaying your 401k rollover could also impact your ability to make required minimum distributions (RMDs) when you turn 73. Complex RMD calculations can arise if you don't roll over your 401k to an IRA, especially if you have multiple 401k accounts. Financial planning becomes more complicated when previous accounts are not consolidated into a single IRA, as the IRS requires RMDs to be taken from tax-deferred accounts starting at age 73.

Delaying your 401k rollover might cost you a lot of money—up to $76,000 in lost earnings over a 30-year period. Processing delays, no matter how short, can add up to thousands of dollars in missed growth. Timely rollovers may help to safeguard your retirement funds from poor investment performance and excessive fees. Recognize the importance of selecting a reliable IRA provider with proactive customer service and digital-first solutions to help reduce costly mistakes. Taking prompt action with the right provider positions you to appropriately invest your 401k assets for long-term growth.

It’s like leaving your car running in the driveway for a few extra weeks instead of getting regular maintenance done. Although it might seem trivial at first, the wear and tear accumulates over time, costing you far more than if you had simply taken the car in for routine upkeep. Similarly, postponing your Bristol-Myers Squibb 401k rollover can result in lost opportunities for your money to grow, which could cost you tens of thousands of dollars in lost returns. Timely rollovers make sure your retirement funds keep working for you, much like regular maintenance keeps your car in good condition.

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Sources:

1. Savova, Romi. PensionBee Report on Delayed 401(k) Rollovers . PensionBee, January 2023.

2. 'Impact of Delayed 401(k) Rollovers: What You Need to Know.' Forbes , Forbes Media, 10 May 2023, www.forbes.com/financial-advisor/401k-rollover-delays .

3. 'Retirement Plan Rollovers.' Internal Revenue Service (IRS) , U.S. Department of the Treasury, 14 July 2022, www.irs.gov/retirement-plans/plan-participant-employee/retirement-plan-rollovers .

4. 'How Delayed 401(k) Rollovers Can Affect Your Retirement.' Charles Schwab , 18 June 2023, www.schwab.com/resource-center/401k-rollover-delays .

5. Barton, Jessica. The Cost of Delayed 401(k) Rollovers: A Case Study . Journal of Retirement Planning , vol. 19, no. 3, 2023, pp. 115-130.

How does the Broward Health Cash Balance Pension Plan ensure the financial security of its employees upon retirement, and what are the specific benefit options available to employees who retire or terminate employment with Broward Health? Discuss the implications of choosing a lump sum versus a monthly benefit and how these choices affect overall retirement income.

Financial Security and Benefit Options: The Broward Health Cash Balance Pension Plan provides financial security by offering a defined benefit based on hypothetical account balances. Upon retirement or termination, employees can choose between a lump sum payment or a lifetime monthly benefit. The lump sum provides immediate access to funds, but opting for a monthly benefit ensures a steady income throughout retirement, which could lead to a more stable financial situation over time.

How does the retirement savings plan at Bristol-Myers Squibb Company compare to similar plans in the biotech and pharmaceutical industry, particularly regarding company matching contributions and employee deferral options? What factors should employees consider when deciding how much to contribute to their retirement accounts at Bristol-Myers Squibb Company?

Early Retirement Accommodations: Employees can retire early if they are at least 55 years old and have completed 5 years of vesting service. Benefits received upon early retirement are typically smaller compared to those received at the normal retirement age of 65. The normal form of benefit payment for early retirees is an actuarially adjusted life annuity based on the cash balance account at the time of early retirement(Broward Health_June 201…).

Bristol-Myers Squibb Company offers various retirement plans, including 401(k) plans and non-qualified deferred compensation plans. Can employees elaborate on the differences between these plans and how each one impacts their long-term retirement savings? Furthermore, how can an employee evaluate which plan best suits their individual retirement goals?

Vesting Schedule and Rights: The Broward Health Cash Balance Pension Plan uses a vesting schedule that grants full vesting rights after 5 years of service. Employees with fewer than 5 years of service are not eligible for benefits and forfeit their account balance. Vesting means employees gain the right to their accrued benefits, which become payable when employment ends(Broward Health_June 201…).

Based on the changes in IRS regulations for 2024, how might they affect Bristol-Myers Squibb Company's retirement and savings plans? Are there any new contribution limits or eligibility rules that employees should be aware of, and how can they adapt their savings strategies accordingly?

Role of the Pension Plan Committee: The Broward Health Pension Plan Committee administers the Cash Balance Pension Plan, ensuring compliance with laws and the plan’s financial health. The committee is responsible for investment decisions and approving plan changes, and it ensures that benefits are paid accurately and in a timely manner(Broward Health_June 201…).

What are the implications of taking an early withdrawal from retirement funds at Bristol-Myers Squibb Company, and how does it affect an employee's financial future? Employees should also consider what alternatives to early withdrawal exist within the company's policy framework.

Changes or Amendments to the Plan: The plan can be amended or terminated, but employees' vested rights are protected. Changes do not reduce accrued benefits from prior contributions, and the plan's termination follows a specific order to prioritize benefit distributions(Broward Health_June 201…).

Employees often have questions about post-retirement benefits, especially concerning medical coverage. What policies does Bristol-Myers Squibb Company have in place to ensure continued healthcare coverage for retirees, and what are the eligibility criteria for these benefits?

Recognition of Past Service upon Re-employment: If employees return to Broward Health after a break, their prior service may be recognized depending on vesting and benefit conditions at the time of rehire. Those who were vested before leaving can have their prior benefits restored, and contributions can resume after re-employment(Broward Health_June 201…).

How does Bristol-Myers Squibb Company handle the integration of pension benefits during mergers or acquisitions, and what can employees expect if they find themselves in such a situation? It would also be important for employees to understand their rights and options during these transitional phases.

Beneficiary Designations: Employees can designate beneficiaries to receive benefits if they die before or after retirement. Beneficiaries can receive lump sums or monthly payments, depending on the employee's retirement eligibility. Failure to designate a beneficiary may result in benefits going to the surviving spouse, children, or other family members as per the plan's order of priority(Broward Health_June 201…).

In light of recent company performance, what are Bristol-Myers Squibb Companyâ€™s future benefits projections, especially regarding pension plans? How can employees utilize this information to better plan for their retirement saving strategies?

Interest Credits on Accounts: The interest credits for cash balance accounts are determined based on U.S. Treasury rates, with a minimum annual interest rate. Interest is applied monthly, enhancing the account value and ensuring that employees' retirement savings grow over time(Broward Health_June 201…).

Given that Bristol-Myers Squibb Company has a robust benefits architecture, what specific programs or platforms are in place for employees to seek clarifications on their retirement benefits? How can Bristol-Myers Squibb company employees efficiently navigate these resources to address their individual inquiries?

Challenges in Filing Claims: The process for filing retirement claims involves notifying Broward Health and submitting the necessary paperwork 30 to 60 days before retirement or termination. In case of a denied claim, employees have the right to request a review and appeal, ensuring fair treatment and timely resolution(Broward Health_June 201…).

For employees looking to gain more information about retirement benefits and other related policies, how can they contact Bristol-Myers Squibb Company effectively? What communication methods are recommended to ensure that their questions are addressed promptly and comprehensively? These questions should provide employees with a deeper insight into their retirement planning while encouraging them to explore the benefits offered by Bristol-Myers Squibb Company further.

Contacting Broward Health for Information: Employees can contact the Employee Benefits department at Broward Health to learn more about the Cash Balance Pension Plan. Resources such as retirement counseling sessions and detailed plan descriptions are available to help employees understand their benefits and make informed decisions(Broward Health_June 201…).

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

In process of terminating U.S. Retirement Income Plan, transferring $3.8 billion of its pension obligations. Previous $1.4 billion transfer to Prudential for 8,000 retirees.

Bristol-Myers Squibb announced a restructuring plan that includes layoffs of approximately 1,200 employees.

Bristol-Myers Squibb offers RSUs to executives and certain employees. The RSUs vest over a three-year period, promoting long-term company performance and employee retention.

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For more information you can reach the plan administrator for Bristol-Myers Squibb at 430 East 29th Street New York, NY 10016; or by calling them at +1 212-546-4000.