What LifePoint Health Physicians Need to Know About Their 401(k) — And Why It Might Not Be Enough

As a physician, you’re trained to think critically, assess risks, and make informed decisions — skills that should extend beyond the hospital or clinic and into your financial life. One key area? Your retirement plan.

If you’re part of LifePoint Health, you’re enrolled in the LifePoint Health 401(k) retirement plan that checks many of the standard boxes. But as with any institutional plan, the deeper you look, the more nuanced things become — especially if you’re a high-earning professional looking to build long-term wealth efficiently.

Let’s walk through what’s inside the plan — and where there might be room to optimize.

Quick Recap: What the LifePoint Health 401(k) Offers

After just 30 days on the job, most employees may become eligible to contribute to LifePoint’s 401(k). You may be able contribute pre-tax (traditional) or after-tax (Roth), and catch-up contributions are allowed after age 50.

The plan also allows rollovers from prior retirement accounts and even has a loan provision for financial flexibility, should you need it.

Matching Contributions: It Depends on Where You Work

LifePoint offers a patchwork of employer contributions depending on your location and employment category:

• Standard match: 25% of the first 6% (up to $3,000 annually).

• Marquette, Portage, Bell physicians: Up to 100% match on 3% of contributions.

• RCCH locations: More complex hybrid matching formulas based on contribution tiers.

• Conemaugh hospitals: May include age- and service-based profit sharing.

  
  

This variability makes it important to understand your specific formula and confirm you’re contributing enough to maximize the match — otherwise, you could leave thousands on the table.

Vesting Rules: Read the Fine Print

You always own 100% of your own contributions, but matching funds and profit-sharing follow vesting schedules. Most LifePoint physicians are fully vested in employer contributions after two years of service, though some employees (like those at RCCH or CMC) may follow a graded schedule of up to five years.

Be sure to know your status before making any career changes — unvested funds are forfeited if you leave too early.

Investment Options: Yes, There’s a Brokerage Window — But…

Here’s where it gets interesting. LifePoint’s plan does include a self-directed brokerage window, which allows you to go beyond the standard menu of mutual funds and target-date funds.

But — and this is important — the brokerage window is administered through Prudential, I believe.

Prudential is a good insurance company and they offer a decent platform for this retirement plan, but most customers don't use insurance companies for their investment accounts, and even a 403(B) can have non-insurance firms like Fidelity, Vanguard and Charles Schwab provide the brokerage account. So LifePoint could use the very strongest companies for their brokerage window and what I have found working with physicians throughout the United States is that when the insurance comany provides the brokerage window it has been vastly inferior to when a non-insurance company has provided the brokerage account in a retirement plan.

It is possible that Prudential is just as good at brokerage accounts as some other firms, but it is also possible because this could be a weak spot because insurance companies in my experience have not as good at brokerage accounts (in terms of broad investment options, low to no fees ect.) as the traditional brokerage firms like Fidelity, Vanguard, Charles Schwab, and Robinhood which all have very low costs and some excellent broad investment options.

This is nothing against Prudential as a company. They are excellent at their core compentency - insurance - but as you move away from core competencies sometimes the firms aren't quite as strong as some of the incumbents in the field like Fidelity, Vanguard and Schwab that are really well known amongst financial advisors for providing broad investment options and very low costs to have an account there or buy or sell securities there.

So in short, insurance companes don't always match pure brokerage firms in terms of cost efficiency, investment breadth, or user experience that physicians might find through industry leaders like Charles Schwab, Fidelity, Robinhood or Vanguard. These firms are known for:

• Low- or no-cost trading

• Access to broad index ETFs and institutional share classes

• Clean, intuitive interfaces and robust research tools

  
  

Some newer platforms (like Robinhood) may eventually enter the 401(k) space too, but for now, the absence of a more flexible, low-cost brokerage window could limit how efficiently you grow your investments over time — especially if you prefer a ultra low cost, and customized to you investment strategy.

When the Plan Isn’t Enough: Consider Outside Guidance

Even a solid 401(k) can fall short when it comes to helping you navigate the bigger financial picture. That’s where working with a fiduciary financial advisor makes all the difference.

At D.R. Harris & Co., we work exclusively on a fee-only basis with physicians across the country — helping them make sense of their workplace plans, minimize taxes, balance debt and investment goals, and design retirement strategies tailored to their lives.

We’re not tied to any plan provider or financial product provider, so our advice can always be centered on your best interest — not the institution’s desire to maximize profits on certain products.

Final Word: Know the Plan, But Think Bigger

The LifePoint 401(k) offers a valuable foundation, especially with early eligibility, employer contributions, and a brokerage window. But knowing the details — your match formula, vesting schedule, and investment options — is critical if you want to truly maximize its potential.

And if you're ready to go beyond “default” and start building a financial strategy that reflects your unique goals, it may be time to work with a fiduciary who understands physicians, inside and out.

About Daniel Harris and D.R. Harris & Co.

Daniel Harris is the founder and President of D.R. Harris & Co., a national, fee-only fiduciary financial advisory firm based in La Jolla, CA. With over two decades of experience helping physicians with their finances, Daniel is dedicated to helping physicians navigate the complexities of their financial lives. He earned his B.A. from Stanford University and his J.D. from UC Berkeley School of Law, where he focused on tax law—knowledge he uses to craft tax-efficient investment strategies for his clients.

Throughout his career, Daniel has personally observed over $1 billion in securities transactions in his career, providing him with invaluable experience in wealth management, tax strategy, and financial planning. As a fiduciary, Daniel is committed to offering advice that puts client interests first and aligning his interests with client interests.

At D.R. Harris & Co., Daniel works directly with physicians to create personalized financial strategies that address the unique challenges they face, from transitioning to becoming an attending to retirement planning to create a retirement income plan to help convert assets into income that will help replace your paycheck's role in retiremet. His goal is to help physicians manage their financial future with confidence, so they can focus on their careers and families and what matters most to them.

Click here to set up an introductory call and discuss how we can help you with your financial transitions in life.

Important Information: Unless you have a signed written advisory agreement with D.R. Harris & Co. we are not your financial advisor and you should do your own research, and talk to your own professional advisors before acting on anything in this article. Also, you should check with your plan documents, your benefits or HR people at work to confirm any of the information in this article, which we believe is accurate but we could be wrong and you need to do your own research.