Community Health System Physicians Retirement - Real Questions - Real Answers

Top 5 Most Common 401(k) Questions I see from CHS/Community Health Systems Physicians — And How to Solve Them

By Daniel Harris, Fiduciary Financial Advisor for Physicians

Every week, I see, talk and hear from physicians who are brilliant at diagnosing patients, leading teams, and navigating the complexities of modern healthcare. But when it comes to their 401(k)s, even the most seasoned physicians, especially those at Community Health Systems (CHS) say they’re often left scratching their heads.

If this sounds familiar, you’re not alone. Across forums, reviews and late-night forum threads, I see the same five pain points come up time and again — real frustrations from real physicians.

Let’s break them down and talk about what you can do to gain more clarity, confidence, and control over your retirement savings.

1. “How much is the match — and when do I actually get it?”

Most physicians understand the concept of a 401(k) match, but the details at CHS can feel murky. One doctor recently wrote, “It’s not clear how long I need to stay to keep the company match. The rules change depending on where you work, and HR isn’t always helpful.”

What’s going on? Matching policies often vary by facility, and vesting schedules are generally more favorable for certain facilities.

As a general rule at non-union facilities the match is $3,500 a year if you put in $7,000 into your 401(k), according to our research. CHS has the right to change the terms of the match every year which is why you can be subject to different terms depending on your date of hire and those terms can change on you on every anniversary of your hiring date.

The baseline rule at CHS is that you are always 100% vested in your own contributions, you vest 20% in employer contributions after year 1 and 20% for each additional year, so at the end of 5 years of employment you should be 100% vested in employed contributions.

Certain facilities had more favorable terms on vesting in the past but more and more facilities are on the standard rule of 100% vested at the completion of 5 full years of employment at CHS.

How to verify: Download your Summary Plan Description (SPD) from your 401(k) website. Then, clarify the vesting schedule and annual match rate for your facilities. If it’s hard to get straight answers, consider speaking with a fiduciary who can interpret it for you and map out your options.

2. “Why are the investment options so limited for Community Health Systems Physicians — and the fees so high?”

Many CHS physicians voice frustration about the investment menu.

What’s going on? A lot of this comes down to the financial vendor the firm uses. I believe the primary vendor is Principal, which is a good insurance company.

However, as what I believe to be a for profit employer, Community Health Systems can use other low cost vendors as well where the investment selection may be broader and the investment options may be better.

At a a first look the fees on the plan do appear to be quite high - perhaps as much as 1% according to my calculations. If that is the case that is very high for a plan with nearly $5 billion in assets in it.

The plan sponsors should definitiely this plan for fees and investment options. The firms they use all good firms, but there are actually better firms for this role in our view and the fees may be seem as disproportionately high for a large plan - if this is correct.

Of course the information we are relying may be wrong, outdated or misinterpreted, but if it is correct and administrative fees could be as high as $5 million a year for a plan this size, the plan sponsor may want to consider getting RFPs from reputable firms like Fidelity, Schwab and Vanguard in addition to their current providers just to compare on price.

What to do: Although Community Health Systems is a giant organization, it can be useful to reach out to Matt Hayes https://www.chs.net/company-overview/leadership/matt-hayes to see if they've ever considered using a firm like Fidelity, Vanguard, or Charles Schwab as the custodian. A for profit plan generally allows for low cost index funds for a top notch brokerage firm and a self directed brokerage account which allows you to tailor your investments to your needs. While I have great respect for Principal as an insurance company, they aren't as big of a brokerage as Fidelity, Vanguard or Charles Schwab and so they can't always bring the same economies of scale to the table.

3. “How do I roll over my 401(k) when I leave?”

Job changes are common in healthcare, but rolling over your retirement plan shouldn’t feel like navigating a maze. Sometimes we hear "I have old 401(k)s from previous jobs, and it’s a hassle to keep track of them. I worry about missing paperwork and tax penalties."

What’s going on? Rollover instructions can sometimes feel vague and do require a close reading of the paper work.

What to do: Before you change jobs, make a plan for your old 401(k). A direct rollover into an IRA or your new employer's plan can preserve your tax-deferred status and give you more control. Often it can be beneficial to show the paperwork to your fiduciairy financial advisor or tax preparer too.

4. “Can I take money out in an emergency — without paying a penalty?”

Life happens. And whether it’s an unexpected family expense or a temporary financial crunch, many CHS physicians want to understand their options. “I want to know if I can take a loan or withdraw for emergencies, but the process is complicated,” “The penalties are steep if you mess up.”

What’s going on? The IRS has strict rules about early withdrawals, loans, and required minimum distributions (RMDs). Each option has pros, cons, and potential penalties depending on your age, employment status, and how the plan is structured.

What to do: For emergencies, this plan may have an option to take out up to $50k or 50% of your account balance whichever is less as a loan. Most retirement plans have hardship withdrawals as well. The loans may be expensive but they may be an option in an emergency. We recommend that you talk to your HR or benefits people to understand the term of any loan or hardship distribution since they can be a good resrouce.

5. “Who can I talk to that actually understands my situation?”

The most common complaint I see isn’t just about rules or fees — it’s about the lack of real, human advice. “When I call for help,” a physician told me, “I just get generic answers. I need someone who understands physician finances, not a call center reading from a script.”

What’s going on? Many retirement plans, including this one do include a reitrement advisor with the plan that you may have to pay for. Some of our clients have paid the plan advisor in the past, across many different financial advisors, and I've never been impressed with what they got in exchange for their money.

What to do: Don’t settle for generic advice. As a fiduciary advisor who specializes in serving physicians, and knows your whole life. Our firm provides personalized, physician-focused guidance that helps you maximize your retirement plan and align it with your career and life goals.

Final Thoughts

CHS physicians dedicate their careers to patient care — but when it comes to planning for retirement, too many are navigating uncertainty and confusion. Whether you’re trying to decode your match, lower your investment fees, or finally roll over that orphaned 401(k), you deserve advice that’s clear, trustworthy, and tailored to your life as a physician.

Ready to take the next step? We help advise physicians at CHS and similar systems untangle their retirement plans, optimize their investments, and gain peace of mind. If you'd like to learn more about Daniel Harris you can do so here. If you'd like to talk about how to make your 401(k) work as hard as you do and schedule a call with a fiduciary advisor that focuses on physicians you can fill out this form here.

Disclosure: While we believe the information that is included in this article is correct, we are not your financial advisor unless you have a written advisory contract with us. We highly recommend that you consult your plan document, or ask your benefits people at work any questions you may have about this article or your plan. We recommend that you do your own research and consult your own advisors before acting on any information that you learned about in this article.