Banner Health Retirement Benefits
As part of its commitment to employee well-being, Banner Health offers comprehensive retirement benefits for its team members. By using these benefits, you can build long-term financial security and save more for retirement.
Overview of Banner Health Retirement Benefits
Banner Health has several retirement benefits for employees, including:
Primary Retirement Benefits
401(k) Plan: Available to all regular employees with a 4% dollar-for-dollar employer match
403(b) Plan: Available to registry employees working through Banner Staffing Services
Legacy Pension Plans: Frozen pensions available only for employees who started before 1992 (Banner/Samaritan/Lutheran) or 2008 (Sun Health)
Health Savings Account (HSA): Triple tax-advantaged savings for medical expenses and retirement
Flexible Spending Accounts (FSAs): Tax-advantaged savings for healthcare and dependent care
Life and Disability Insurance: Protection for your retirement planning strategy
MyWell-Being Program: Earn points by making healthy decisions
Let’s take a closer look at each option.
Banner Health 401(k) Plan
The Banner Health 401(k) plan is the cornerstone of the company's retirement benefits package. Using this program, employees contribute a portion of their salary to a tax-advantaged account, where the funds can grow over time through strategic investments.
Eligibility
All regular employees are eligible to participate in the 401(k) upon hire, including:
Full-time employees
Part-time employees
Per-diem employees
Flat-rate employees
Note: Employees working through Banner Staffing Services participate in a separate 403(b) plan rather than the 401(k). More on this below.
Enrollment
All eligible employees are automatically enrolled 90 days after their hire date unless they opt out or enroll themselves earlier.
Contributions
Contributions can be made on a traditional (pre-tax) or Roth (after-tax) basis. The first 4% of contributions must be on a pre-tax basis to receive employer matching. After that, you are free to contribute however you choose.
Contribution Limits
For 2025, the IRS limits for 401(k) contributions are:
Employees under 50: Up to $23,500
Employees 50 and older: Up to $31,000 annually (includes $7,500 in catch-up contributions)
Notably, at Banner Health, employer matching contributions do not count toward this limit.
Employer Matching Contributions
Banner Health offers one of the most generous 401(k) matches in the healthcare industry. The company will match employee contributions dollar-for-dollar up to 4% of all eligible compensation. This match begins after you’ve worked at the company for a year. The funds are calculated and deposited every pay period.
Vesting
All Banner Health 401(k) funds, including employee contributions and the employer match, are immediately 100% vested. There is no waiting period to take control of your account.
Investment Options
The plan offers a wide range of investment choices through Fidelity Investments, such as:
Target date funds (investments are automatically chosen based on your projected retirement date)
Individual mutual funds across various asset classes
Company stock fund
True-Up Feature
Banner Health provides a true-up feature that protects employees from losing matching contributions due to irregular contribution patterns. During the first quarter of each year, Banner evaluates the prior year's earnings and contributions to ensure you receive the full matching contribution you were entitled to based on your annual compensation.
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Banner Health 403(b) Plan
A 403(b) plan is a retirement savings plan similar to a 401(k), but specifically designed for employees of nonprofit organizations, public schools, and certain other tax-exempt entities. Banner Health offers a 403(b) plan as an alternative retirement plan for employees who may not be eligible for the company's 401(k).
Eligibility
The Banner Health 403(b) plan is specifically for registry team members working through Banner Staffing Services.
Key Features
Like the 401(k), Banner Health’s 403(b) plan lets you contribute a portion of your salary on a pre-tax and/or Roth post-tax basis for retirement. The limits for contributions are the same as for a 401(k). The plan is administered by Fidelity Investments, with the same options for an investment portfolio to grow your wealth.
No Employer Match
Unfortunately, unlike the 401(k), Banner Health does not make matching contributions to the 403(b) plan.
Legacy Pension Plans
In the past, Banner Health offered a traditional defined-benefits pension plan. However, these plans have been frozen and discontinued as the company transitioned to 401(k) instead.
Current Status
All Banner Health pension plans are frozen and have been for many years. No new participants can join, and no additional benefits are being accrued. Some previous participants can still receive benefits they had already accrued.
Potential Eligibility
You MAY have pension benefits if you:
Started with Samaritan, Lutheran, or Banner prior to 1992
Started with Sun Health prior to 2008
However, working during these time frames does not guarantee benefits. Contact your plan administrator to learn more.
Health Savings Account (HSA)
A health savings account (HSA) is a triple tax-advantaged savings account designed to help individuals pay for qualified medical expenses.
Eligibility
HSAs are available to employees enrolled in Banner Health's high-deductible health plans, primarily the Value Plan and the Premier Plan.
Tax Advantages
HSAs provide triple tax benefits:
Tax-deductible contributions to reduce your taxable income
Tax-free growth for any earnings in your account
Tax-free withdrawals for qualified medical expenses
HSA as a Retirement Account
After age 65, HSA funds can be withdrawn for any purpose without penalty (subject to ordinary income taxes), making HSAs function like traditional IRAs with better tax treatment for medical expenses. This makes HSAs one of the most powerful retirement savings tools available, often called "stealth retirement accounts" by financial planners.
2025 HSA Contribution Limits
In 2025, the contribution limits for an HSA are:
Individual coverage: $4,300
Family coverage: $8,550
Age 55+: Additional $1,000 via catch-up contributions
Investment Options
Once your HSA balance reaches $1,000, you can invest in mutual funds to achieve higher growth potential. This makes HSAs a powerful tool for long-term retirement savings.
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Flexible Spending Accounts (FSAs)
Flexible spending accounts (FSAs) are employer-sponsored benefit accounts that allow employees to set aside pre-tax dollars to pay for eligible expenses, thereby reducing their taxable income. Unlike HSAs, FSAs operate on a "use-it-or-lose-it" basis, meaning unused funds are generally forfeited at the end of the plan year (with limited rollover options).
While primarily designed for current-year expenses, FSAs can complement retirement planning by reducing current tax burdens and freeing up other funds for retirement savings.
Life and Disability Insurance
Life and disability insurance help safeguard your financial plan and retirement savings from unexpected events. While these aren't direct retirement savings vehicles, they play a crucial role in retirement planning by ensuring your retirement goals aren't derailed by unforeseen circumstances.
Company-Provided Coverage
Banner Health provides basic life insurance and Accidental Death & Dismemberment (AD&D) coverage at no cost to employees, as well as short-term and long-term disability insurance.
Voluntary Coverage
Additional coverage options are available for purchase to provide enhanced protection for your family and retirement planning strategy.
MyWell-Being Program
The Banner Health MyWell-Being program encourages employees to make healthy decisions. By using the program, you can earn points that will lower your medical premiums, give you access to an HSA, and more. These rewards can reduce your expenses and help you save more for retirement.
MyWell-Being is available to all team members and all members of their households.
Tips to Make the Most of Your Retirement Benefits
Start with the 401(k) Match
Your first priority should be contributing at least 4% to your Banner Health 401(k) to capture the full employer match. This is essentially free money that provides an immediate 100% return on your investment. Even if you can only afford small contributions initially, make sure you're getting this match. It's one of the best financial moves you can make.
Maximize Your HSA (If Eligible)
If you're enrolled in the Value or Premier Plan, treat your HSA as a powerful retirement account. The triple tax advantages make HSAs even more valuable than traditional retirement accounts. Contribute the maximum amount annually, invest the funds once you reach $1,000, and avoid using HSA money for current medical expenses if possible. This will help you preserve long-term growth for your investments.
Use the True-Up Feature Strategically
Don't worry if your contributions aren't perfectly timed throughout the year. Banner Health's true-up feature ensures you receive the full matching contribution based on your annual compensation, even if bonuses or irregular contribution patterns affect your timing during the year.
Coordinate Pre-Tax and Roth Contributions
Remember that your first 4% to your 401(k) must be pre-tax, but additional contributions can be Roth. Consider splitting contributions between pre-tax and Roth to create tax diversification in retirement, giving you more flexibility when managing your tax situation later.
Don't Overlook Supporting Benefits
The supporting benefits at Banner Health can significantly boost your overall retirement savings capacity. Use FSAs strategically to reduce current expenses, freeing up more money for retirement contributions. Take advantage of the MyWell-Being Program to lower your healthcare premiums and potentially qualify for HSA contributions on the Value Plan.
Review and Rebalance Regularly
Don't set your contributions and forget them. Review your investment allocations at least annually, adjust contribution rates after salary increases, and ensure your beneficiary designations stay current. Your retirement strategy should evolve as your life and financial situation change.
Understand the Big Picture
Banner Health's retirement benefits work best when used together. The combination of a generous 401(k) match, valuable HSA options, immediate vesting, and supporting programs creates multiple pathways to retirement security. Understanding how these benefits complement each other helps you make the most of the entire package.
Know When to Seek Professional Help
Managing your Banner Health retirement benefits can get complicated. It’s easy to make a costly mistake. Consider working with a fiduciary financial advisor if you are approaching retirement and need help with distribution strategies. Look for a financial advisor who:
Is licensed as a fee-only fiduciary advisor
Has experience with nonprofit organization retirement plans
Offers comprehensive financial planning services
Provides transparent fee structures
Banner Health Retirement Benefits: Your Key to a Better Future
Banner Health's retirement benefits package offers golden opportunities to build long-term financial security. Of course, to make the most of those benefits, it helps to have the right advice in your corner.
At TrueWealth Financial Partners, we specialize in helping professionals like you save more for retirement. Our fee-only fiduciary advisors can help you plan your distributions and optimize your tax strategy so you keep more of the funds you’ve worked for.
Schedule a free consultation today, and we’ll be happy to help you take the next step toward a better retirement.
FAQs
What benefits do I get if I work part-time at Banner Health?
Part-time employees are eligible for the same 401(k) benefits as full-time employees, including the 4% employer match after one year of service. HSA eligibility depends on enrollment in qualifying high-deductible health plans.
Does Banner Health have a pension?
Banner Health has a 401(k) plan to help employees save for retirement. However, Banner Health's defined-benefits pension plans are frozen and have been for many years. No new participants can join, and no additional benefits are being accrued.
When can I start contributing to my Banner Health 401(k)?
You can start contributing immediately upon hire if you're a regular full-time, part-time, per-diem, or flat-rate team member. However, employer matching doesn't begin until after your one-year anniversary with Banner Health.
What's the difference between Banner Health's 401(k) and 403(b) plans?
The 401(k) is for regular Banner Health employees and includes a generous 4% employer match. The 403(b) is specifically for registry employees working through Banner Staffing Services and does not include employer matching contributions.
Do I lose my employer match if I leave Banner Health?
Banner Health offers immediate 100% vesting, which means all contributions (both yours and Banner Health's) are yours to keep from day one. This is a significant advantage compared to many other employers.
How much should I contribute to my HSA?
If eligible, consider maximizing your HSA contributions ($4,300 for individual coverage or $8,550 for family coverage in 2025). The triple tax advantages make HSAs extremely valuable for both current healthcare needs and retirement planning.
Can I invest my HSA funds?
Yes, once your HSA balance reaches $1,000, you can invest in mutual funds for potentially higher growth. This investment capability makes HSAs powerful long-term retirement savings vehicles.
How do I know if I have a legacy pension benefit?
You may have pension benefits if you started with Samaritan, Lutheran, or Banner prior to 1992, or Sun Health prior to 2008. However, working during these periods doesn't guarantee benefits. Contact the appropriate plan administrator to determine your eligibility.
How often should I review my retirement strategy?
Review your retirement contributions and investment allocations at least annually and whenever you experience major life changes like salary increases, marriage, having children, or approaching retirement. Regular reviews ensure your strategy stays aligned with your goals.
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