Advocate’s 401(k) Plan:

Traditional 401(k) savings plans are deducted from your eligible pay on a pre-tax basis, meaning you’ll have to pay income taxes in retirement on this money. As such, contributing to the traditional 401(k) could cause federal taxation of you Social Security retirement benefits.

Roth 401(k) savings are deducted from your eligible pay on an after-tax basis, meaning you will not have to pay taxes on this money in retirement. This helps you avoid paying income taxes on your Social Security retirement benefits.

If you’ve reached age 59 ½ and still work at Advocate, you can do an “in-service rollover” of your Advocate 401(k) balance to an IRA.

When you do this, you can still add new money to the Advocate 401(k) plan each payday and get your match from Advocate. It’s the best of both worlds. If you are unsure how to do this, we can help.

Advocate’s Pension Plan

Advocate contributes to the Advocate Pension Plan, a 401(a), on your behalf, based upon your eligible earnings. Pension benefits are then paid in retirement and are taxed by the federal government as ordinary (earned) income. This can cause taxation of your Social Security retirement benefits.

Alternatively, when you stop working at Advocate, you can roll over the balance in your Advocate Pension Plan to a traditional IRA that you own and control.

We can help you do this, and, once it’s in your traditional IRA, we can help you convert it from tax-deferred to tax-free. This can help you avoid paying federal income taxes on your Social Security retirement benefits.

Please contact us if you have any questions. We have experience working with current Advocate employees.

We are not affiliated with Advocate Health Care or Financial Engines.