Retiring from LewisGale: The 5 Big Decisions Every HCA Employee Needs to Make

After years of early mornings, long shifts, and keeping things running at LewisGale, having a little more control over your calendar probably sounds pretty good.

Daydreaming about retirement during a tough shift and actually turning in your notice are two different things. Somewhere between the two, the questions start: Can we afford for me to step away? What will we do about health insurance? And how do I turn my HCA retirement savings into a paycheck?

You don’t have to figure everything out in a single afternoon. But before you pick your final day and hand over your badge, these are five decisions worth working through.

1. When can you actually afford to stop working?

Being ready to leave work doesn’t automatically mean your finances are ready. Then again, you might be closer than you think.

Start with what your life in retirement will cost. Include the regular bills and the things you’ve been looking forward to: traveling, spoiling the grandkids, or finally having a Tuesday morning that belongs entirely to you.

Then work backward. How much will Social Security cover? What will your savings need to provide? How much will you need to withdraw after accounting for taxes?

Your plan should show how you’ll pay the bills when stocks hit a rough patch or the heat pump quits in January. That’s where our retirement planning process begins: understanding what your money needs to do before deciding how to invest it.

2. What should you do with your HCA 401(k)?

This deserves more thought than checking a box on your exit paperwork. Rolling money into an IRA might make sense. Keeping it in the HCA plan could be the better move.

Compare investment choices, total costs, withdrawal options, and the services you’ll receive. HCA’s employer match depends on years of service, so ask your benefits team to confirm your vested balance and eligibility for any final employer contributions before leaving.

One detail matters if you’re retiring before 59½. If you separate from your employer during or after the calendar year you turn 55, qualifying withdrawals from that employer’s plan may avoid the 10% early withdrawal penalty. That particular exception doesn’t apply to IRAs. Pretax withdrawals generally remain subject to income tax, so confirm the rules before moving money.

Finally, review how the account is invested. Money you’ll need over the next couple of years may call for a different approach from money you won’t touch for twenty.

3. When should you start Social Security?

Your last day at LewisGale and your first Social Security check don’t have to happen together.

You can generally start retirement benefits at 62 for a reduced monthly amount. Waiting increases your monthly benefit, up to age 70.

But “wait as long as possible” isn’t a complete answer.

A bigger future check matters. So does what waiting would require you to withdraw from savings. Your health, your spouse’s situation, and your income needs all belong in the conversation.

I’d want to compare a few options side by side and see how each affects the income you’ll have now and later.

4. How will you replace your health insurance?

Working in healthcare doesn’t make choosing your retirement coverage any less confusing.

If you retire before 65, options may include a spouse’s employer plan, COBRA, or Marketplace coverage. Marketplace financial assistance depends partly on household income, so retirement withdrawals can affect what you pay.

Look beyond the monthly premium. Check deductibles, prescriptions, doctors, and what a difficult medical year could cost out of pocket.

If you’re already Medicare eligible, pay attention to enrollment timing. Don’t assume COBRA lets you put off Medicare. It doesn’t extend your Part B special enrollment deadline.

Before giving notice, know exactly when your work coverage stops and its replacement begins. If your spouse is younger, make sure their coverage is accounted for, too.

5. How will you keep taxes from taking more than necessary?

A smaller paycheck in retirement doesn’t automatically mean a smaller tax bill.

Withdrawals from pretax retirement accounts generally create taxable income. Roth conversions also create taxable income on amounts that haven’t already been taxed.

For some retirees, the years after work ends and before Social Security and required minimum distributions begin create what I call the “Goldilocks period.” Income may temporarily drop, giving you room to consider tax moves that could be less attractive later.

That doesn’t mean everyone should rush into Roth conversions. You need to weigh today’s tax bill against the potential future benefit. Higher income can also increase Medicare premiums.

This is where your fiduciary advisor and tax professional should work together, looking beyond this year’s tax return.

You’ve spent years earning and saving this money. Before leaving LewisGale, give yourself time to understand how these decisions fit together. Your retirement date affects your healthcare needs. Your Social Security timing affects your withdrawals. Those withdrawals affect your taxes.

If you’d like help working through the numbers, schedule a call with our team at Martin Wealth Solutions. We’ll talk about where you are today and what you want life after LewisGale to look like.

Martin Wealth Solutions is not affiliated with or endorsed by LewisGale or HCA Healthcare. This article is educational; confirm benefits with your plan administrator and tax decisions with your tax professional. This article is not individualized investment, tax, or legal advice. Mistakes can and do happen.

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