25 Banner Health Retirement FAQs [2025]
Banner Health is one of the largest nonprofit health care systems in the country. Employees enjoy a competitive retirement benefits package designed to help build a better financial future.
1. What retirement benefits does Banner Health offer?
Banner Health provides several retirement benefits for employees, including:
Banner Health 401(k) Plan: Available to regular full-time, part-time, per-diem, and flat-rate employees with a 4% dollar-for-dollar employer match after one year
403(b) Plan: Available to registry employees through Banner Staffing Services with similar contribution options
Legacy Pension Plans: Frozen plans for employees who started before 1992 (Banner/Samaritan/Lutheran) or 2008 (Sun Health)
Health Savings Account (HSA): Available with high-deductible health plans, offering triple tax advantages and employer contributions
Flexible Spending Accounts (FSAs): Health Care FSA and Dependent Care FSA for tax-advantaged savings
Life and Disability Insurance: Company-paid basic coverage with options for additional protection
Employee Assistance Programs: Includes financial counseling and wellness resources
This FAQ will cover each of these benefits in detail to help you understand how to maximize your retirement security with Banner Health
Banner Health 401(k) Plan Questions
2. When am I eligible to participate in Banner Health's 401(k) plan?
You are eligible to participate in the Banner 401(k) if you are a regular full-time, part-time, per-diem, or flat-rate team member. You can begin contributing to the plan as soon as you're hired. All eligible employees have immediate vesting for their own contributions.
3. Does Banner Health have an employer 401(k) match?
Yes, after your one-year anniversary, Banner will match your 401(k) pre-tax contributions dollar for dollar, up to 4% of your eligible compensation. This makes it one of the more generous matching programs in the healthcare industry. The match is also not included in your annual contribution limits.
4. How much can I contribute to my Banner Health 401(k) in 2025?
In 2025, you can contribute up to $23,500 to your Banner Health 401(k) if you're under 50, or $31,000 if you're 50 or older through catch-up contributions. These limits are set by the IRS and are adjusted every year.
5. Can I make contributions on a pre-tax or Roth basis?
Banner Health's 401(k) plan allows both pre-tax and Roth (after-tax) contributions. However, Banner Health has a unique requirement that the first 4% of your contributions must be made on a pre-tax basis to receive the employer match. After you've contributed the first 4% pre-tax, any additional contributions may be pre-tax, Roth post-tax, or a combination of both.
6. How does vesting work for Banner Health's 401(k) match?
All employee contributions to the Banner Health 401(k) are immediately 100% vested. Employer matching contributions are also immediately vested. (Though the match does not become available until after one year of service at the company.)
7. What investment options are available in Banner Health's 401(k)?
The Banner Health 401(k) plan is administered by Fidelity, which offers a wide range of investment options. You can choose which investment funds to allocate your contributions to. If you do not specify the investment funds when you enroll, your contributions will be defaulted into a target date fund appropriate for your retirement age.
Banner Health 403(b) Plan Questions
8. What is the Banner Health 403(b) Plan?
The Banner Health 403(b) Plan is a tax-advantaged retirement savings plan specifically designed for registry team members who work through Banner Staffing Services. Like a 401(k), the 403(b) allows you to save money for retirement on a pre-tax and/or Roth post-tax basis, helping reduce your current taxable income while building savings for the future. This plan is administered separately from the regular employee 401(k) plan.
9. How does the 403(b) plan differ from the 401(k) plan?
Unlike the Banner 401(k), the 403(b) plan is specifically for registry employees working through Banner Staffing Services. Both plans allow pre-tax and Roth contributions, and your account can be passed on to your heirs.
10. Who is eligible for Banner Health's 403(b) plan?
If you are a registry team member working through Banner Staffing Services, you're eligible for the Banner Health 403(b) Plan.
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Legacy Pension Plans
11. Does Banner Health offer a pension plan?
Banner Health does not currently offer a defined-benefits pension plan. All pension plans have been frozen since 2002. If you started your employment with Samaritan, Lutheran, or Banner prior to 1992, or Sun Health prior to 2008, you MAY have a pension benefit. However, working during this time period does not guarantee you will have a benefit.
12. How do I find out if I have a legacy pension benefit?
If you believe you may be eligible for a pension benefit based on your start date, contact the Banner Health Retirement Income Plan administrator at Principal Life Insurance Company. You can reach them at 800-247-7011, or write to:
ATTN: Retirement and Income Solutions, PO Box 4926
Grand Island, NE 68802-4926
Reference contract number 2-21761
Health Savings Accounts (HSA) and Flexible Spending Accounts (FSAs)
13. Does Banner Health offer a Health Savings Account?
Yes, Banner Health offers HSAs to employees enrolled in high-deductible health plans (the Value Plan or Premier Plan). An HSA is a bank account used for qualified health care expenses (medical, prescription, dental, and vision) with significant tax advantages. After retiring, you can use the money for Medicare premiums and other qualified expenses.
14. How much does Banner Health contribute to my HSA?
Banner Health makes contributions to your HSA based on which high-deductible health plan you choose:
Value Plan: Employees who meet the MyWell-Being Level 3 target can qualify for employer HSA contributions.
Premier Plan: Banner Health contributes $450 for individual coverage or $900 for family coverage, made on a per-paycheck basis.
15. What are the tax benefits of an HSA?
HSAs offer three tax advantages:
Your contributions come out of your paycheck pre-tax, reducing your taxable income for the year.
Your contributions will grow tax-free in your account.
You can make tax-free withdrawals for qualified medical expenses, usable by you and any eligible dependents.
Any funds in your account will roll over from year to year, as well. There is no "use it or lose it" rule.
16. Can I invest my HSA funds?
Yes, once your HSA savings reach $1,000, you can invest your money in mutual funds to achieve a higher rate of growth. This makes HSAs powerful long-term savings vehicles that can supplement your retirement planning.
17. What happens to my HSA if I leave Banner Health?
Your HSA is always your personal account to keep. If you leave Banner Health, you can take your funds with you.
18. What FSA options does Banner Health offer?
Banner offers two types of FSAs:
Health Care FSA: You can save up to $3,200 per year for eligible medical expenses.
Dependent Care FSA: You can save up to $5,000 per year for eligible day care expenses for children up to age 13 and elder care.
19. Can I have both an HSA and an FSA?
You cannot participate in the Health Care FSA if you are enrolled in the Value or Premier High-Deductible Health Plans (which are HSA-eligible). However, you may be able to participate in a limited-purpose FSA for dental and vision expenses while maintaining your HSA.
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Planning for Retirement and Tax Strategies
20. Can I roll over retirement accounts from previous employers?
Yes, you can rollover old retirement plans from previous employers into your Banner Health 401(k) or 403(b). Contact Fidelity to initiate this process and consolidate your retirement savings.
21. What are the tax implications of Banner Health's retirement benefits?
Both the 401(k) and 403(b) allow pre-tax and Roth contributions.
Pre-tax contributions will lower your taxable income now, but will be taxed as ordinary income during retirement.
Roth contributions are after-tax, meaning they are taxed now, but the funds will grow tax-free and can be withdrawn tax-free in retirement.
Many financial advisors recommend diversifying your tax treatment by contributing to both pre-tax and Roth accounts. This gives you flexibility in retirement to manage your tax liability. A fiduciary financial advisor can help you make the right choice for your financial future.
22. What happens to my benefits if I retire from Banner Health?
Your vested 401(k) or 403(b) balance remains yours in retirement. You can leave it with Fidelity, roll it to an IRA, or begin taking distributions according to IRS rules. Your HSA remains yours to use for medical expenses, including Medicare premiums.
23. What are the biggest mistakes Banner Health employees make with retirement benefits?
Common mistakes include:
Not contributing at least 4% to get the full employer match (missing free money!)
Failing to increase contributions with salary increases
Not taking advantage of the HSA's triple tax benefits
Forgetting to update beneficiaries after life changes
24. When should I consider working with a financial advisor?
Consider working with a fiduciary financial advisor if you are approaching retirement and need distribution planning, especially if you:
Have complex financial goals or situations
Need help optimizing your tax strategy across multiple account types
Want comprehensive retirement planning beyond just the retirement accounts
Have questions about coordinating Banner Health benefits with spousal benefits
25. What should I look for in a financial advisor?
Look for advisors who offer financial planning beyond just investments, including:
Retirement planning
Tax optimization strategies
Estate planning coordination
Retirement income distribution strategies
Fiducary financial advisors are legally required to put your interests first and disclose any conflicts of interest, making them a reliable source of guidance. The best advisors for you will provide personalized service with deep expertise in 401(k)/403(b) optimization, HSA strategies, and healthcare-specific financial planning considerations.
Get the Help You Need from the TrueWealth Team!
Banner Health's retirement benefits offer solid opportunities for building long-term wealth, especially the company's 401(k) and employer match. However, optimizing your benefits takes careful planning. It’s easy to make a mistake and leave money on the table.
At TrueWealth Financial Partners, we specialize in helping professionals like you hone their tax strategies and save more for the future. If you’re nearing retirement, we can give you the insights you need to make your golden years truly golden.
Schedule a free consultation with one of our fiduciary financial advisors, and we’ll be happy to help you in any way we can. Let’s talk!
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