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Delaying the Rollover of Your Nordson 401k Could Cost You $76K, Study Finds

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Healthcare Provider Update: Nordson offers a comprehensive benefits package to its U.S. employees, including medical, dental, vision, and prescription coverage. The company supports employee wellness through HSAs, FSAs, and a wellbeing program. Retirement benefits include both traditional and Roth 401(k) options, life insurance, and disability coverage. Nordson also provides paid time off, adoption reimbursement, and tuition assistance5. 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 Nordson 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.

'Nordson 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:

  1. The impact of delays on 401k rollovers and potential financial losses.

  2. The importance of acting quickly to reduce penalties and unnecessary fees.

  3. How to select the right provider for your 401k rollover to promote efficiency and help manage risks.

The rollover of a Nordson 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 Nordson 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 Nordson 401k Rollover

Whether you are just starting work with Nordson, 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 Nordson 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. Nordson 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 Nordson 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 Nordson 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 Nordson 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 Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.

Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service​(Nordson Corporation_Feb…).

What are the eligibility criteria for joining the Nordson Corporation Salaried Employees Pension Plan, and how can employees determine their vesting status as they approach retirement? It is essential for employees to be aware of the timelines and requirements necessary to fully benefit from the retirement plan offered by Nordson Corporation.

Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits​(Nordson Corporation_Feb…).

In what ways can employees at Nordson Corporation access information about their pension plan benefits, and what steps should they follow if they believe their claims for benefits were denied? Knowing the appropriate channels for receiving information can help employees navigate any discrepancies with their pension benefits.

Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions​(Nordson Corporation_Feb…).

What options does Nordson Corporation provide for early retirement, and how can employees assess whether an early retirement is financially feasible for them? Understanding the implications of early retirement can significantly impact an employee's long-term financial security.

Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date​(Nordson Corporation_Feb…).

How does Nordson Corporation's pension plan ensure that employees receive monthly benefits post-retirement, and what are the different forms of payment available to retirees? Grasping the payment structures may help employees make informed decisions regarding their retirement income.

Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option​(Nordson Corporation_Feb…).

What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.

ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights​(Nordson Corporation_Feb…).

How does the termination or amendment of the Nordson Corporation Salaried Employees Pension Plan affect employees' accrued benefits, and what protections are in place? Awareness of these scenarios can help employees better plan their financial futures in relation to their pensions.

Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change​(Nordson Corporation_Feb…).

In what situations might employees at Nordson Corporation lose their pension benefits, and what preventative actions can they take to ensure they remain eligible for these benefits? Understanding the risks involved in pension plans can aid employees in maintaining their retirement security.

Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits​(Nordson Corporation_Feb…).

How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.

Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries​(Nordson Corporation_Feb…).

What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.

Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response​(Nordson Corporation_Feb…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Pension Plan Name: Nordson Corporation Retirement Plan Qualification Criteria: Years of Service: Generally requires a minimum of 5 years. Age Qualification: Typically eligible at age 65. Pension Formula: Formula is based on a percentage of final average salary and years of service. 401(k) Plan Name: Nordson Corporation 401(k) Savings Plan Qualification Criteria: Employees are eligible to participate after completing 30 days of service. Company Contribution: Nordson matches employee contributions up to a certain percentage.
News: In early 2024, Nordson Corporation announced a significant restructuring plan, including a reduction of approximately 5% of its global workforce. This move was part of a broader strategy to streamline operations and improve overall efficiency. The company also updated its employee benefits package, including modifications to its pension and 401k plans. Specific changes included adjusting the company’s matching contributions and modifying pension benefit accrual rates.
Nordson Corporation (NDSN) provides stock options and RSUs to employees as part of their compensation packages. Stock options at Nordson Corporation (NDSN) are generally granted to senior executives and key employees based on performance and tenure. RSUs are also awarded to employees as a form of long-term incentive, typically vesting over a period of time.
Benefits Overview: Nordson's official site provides information on various health benefits including medical, dental, and vision insurance plans. Employees have access to comprehensive health coverage, which typically includes options for health savings accounts (HSAs) and flexible spending accounts (FSAs). Recent Updates: The company has updated its benefits plans over the years. Specific changes for 2022, 2023, and 2024 can be found in their annual benefits summaries or employee communications.
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