Healthcare Provider Update: Enterprise Products Partners provides a flexible benefits package that includes medical, dental, vision, and prescription coverage. Employees can access FSAs, life and disability insurance, and a 401(k) plan with matching contributions and profit sharing. Additional perks include educational assistance and paid time off 9. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. 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 Enterprise Products Partners 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.
'Enterprise Products Partners 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:
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The impact of delays on 401k rollovers and potential financial losses.
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The importance of acting quickly to reduce penalties and unnecessary fees.
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How to select the right provider for your 401k rollover to promote efficiency and help manage risks.
The rollover of a Enterprise Products Partners 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 Enterprise Products Partners 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 Enterprise Products Partners 401k Rollover
Whether you are just starting work with Enterprise Products Partners, 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 Enterprise Products Partners 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. Enterprise Products Partners 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 Enterprise Products Partners 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 Enterprise Products Partners 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 Enterprise Products Partners 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.
What type of retirement savings plan does Enterprise Products Partners offer to its employees?
Enterprise Products Partners offers a 401(k) retirement savings plan to its employees.
Does Enterprise Products Partners match employee contributions to the 401(k) plan?
Yes, Enterprise Products Partners provides a matching contribution to employee contributions, subject to certain limits.
What is the maximum contribution limit for the 401(k) plan at Enterprise Products Partners?
The maximum contribution limit for the 401(k) plan at Enterprise Products Partners is in accordance with IRS guidelines, which may change annually.
Can employees of Enterprise Products Partners choose how their 401(k) contributions are invested?
Yes, employees of Enterprise Products Partners can choose from a variety of investment options for their 401(k) contributions.
When can employees of Enterprise Products Partners start participating in the 401(k) plan?
Employees of Enterprise Products Partners can typically start participating in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.
Is there a vesting schedule for the matching contributions at Enterprise Products Partners?
Yes, Enterprise Products Partners has a vesting schedule for matching contributions, which determines when employees have full ownership of those funds.
Can employees take loans against their 401(k) balance at Enterprise Products Partners?
Yes, employees of Enterprise Products Partners may have the option to take loans against their 401(k) balance, subject to plan rules.
What happens to my 401(k) account if I leave Enterprise Products Partners?
If you leave Enterprise Products Partners, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan, depending on the plan's provisions.
Does Enterprise Products Partners offer any financial education resources for employees regarding their 401(k)?
Yes, Enterprise Products Partners provides financial education resources to help employees make informed decisions about their 401(k) savings.
Are there any fees associated with the 401(k) plan at Enterprise Products Partners?
Yes, there may be administrative and investment fees associated with the 401(k) plan at Enterprise Products Partners, which are disclosed in the plan documents.