If you work for HCA Healthcare in Florida, you've got access to some really solid retirement benefits. But here's the thing: having access to them and actually maximizing them are two different things. Let's walk through your HCA 401(k) match and HCA Employee Stock Purchase Plan (ESPP) in plain English. No jargon. No confusing finance talk. Just practical advice on how to make the most of what HCA offers.
Before we get started, I'm a financial advisor for HCA employees and others retiring in Florida. Reach out if you're about to retire in Florida or if you just have questions. I'd be happy to meet with you.
Your HCA 401(k): Don't Leave Free Money on the Table
HCA offers one of the better 401(k) matches in healthcare. Here's how it works.
The Match Structure
HCA matches 100% of what you contribute, but the percentage increases based on how long you've been with the company:
- 0 to 4 years: 3% match
- 5 to 9 years: 4% match
- 10 to 14 years: 6% match
- 15 to 19 years: 7% match
- 20 to 24 years: 8% match
- 25+ years: 9% match
What this means in real dollars:
Let's say you make $80,000 per year and you've been with HCA for 12 years (so you get the 6% match).
If you contribute 6% of your pay ($4,800/year), HCA contributes another $4,800. That's $4,800 in free money. Every single year.
Over 20 years, that's $96,000 in employer contributions alone (not counting any investment growth).
How Much Should You Contribute?
At minimum: Contribute enough to get the full match. If you're getting a 6% match, contribute at least 6%. Anything less and you're literally saying no to free money.
Ideally: Contribute as much as you can afford, up to the IRS limit ($23,500 in 2025, or $31,000 if you're 50 or older with catch-up contributions).
The more you save now, the more comfortable your retirement will be.
The Automatic Enrollment Feature
If you're a newer HCA employee, you were probably automatically enrolled in the 401(k) at 3% of your pay. That's great, but here's the catch: 3% might not be enough to get your full match.
Check your years of service. If you've been there 5+ years and you're still only contributing 3%, you're leaving money on the table.
Action step: Log into your 401(k) account and increase your contribution to at least match your vesting level.
Vesting: When the Match Is Actually Yours
You're always 100% vested in your own contributions. But HCA's matching contributions vest over time:
- After 2 years: You're 20% vested in the match
- After 3 years: 40% vested
- After 4 years: 60% vested
- After 5 years: 80% vested
- After 6 years: 100% vested (it's all yours)
If you leave HCA before you're fully vested, you forfeit the unvested portion of the match.
If you're close to a vesting milestone and thinking about leaving, it might be worth sticking around a bit longer to lock in that match.
The HCA Employee Stock Purchase Plan (ESPP): A 10% Instant Gain
The ESPP is one of those benefits that sounds complicated but is actually pretty straightforward once you understand it.
How It Works
Through payroll deductions, you can buy HCA Healthcare stock at a 10% discount.
Here's the setup:
- Quarterly enrollment periods: You can enroll four times per year
- Four purchase dates throughout the year
- Maximum contribution: $25,000 per year
- Purchase method: Payroll deductions from your paycheck
Simple example:
Let's say HCA stock is trading at $300 per share on the purchase date.
Through the ESPP, you buy it at $270 per share (10% discount).
If you immediately sell it at the market price of $300, you just made $30 per share. That's a 11.1% gain instantly (before taxes).
The Big Question: Should You Hold or Sell Immediately?
This is where a lot of HCA employees get stuck. Let me break down both options.
Option 1: Sell Immediately
You buy the stock at a 10% discount and sell it right away at market price. You lock in the 10% gain (roughly 11% return on what you paid).
Pros:
- Guaranteed profit
- No risk of the stock price dropping
- You free up cash to use elsewhere (pay off debt, invest diversified, save for other goals)
Cons:
- Taxed as ordinary income (like a bonus)
- You don't benefit if HCA stock goes up after you sell
Option 2: Hold the Stock
You buy at the discount and hold onto the shares, hoping the stock price increases over time.
Pros:
- Potential for bigger gains if HCA stock rises
- After holding for 1+ year, you can get long-term capital gains tax rates (lower than ordinary income)
Cons:
- Stock could go down, and you lose money
- Your money is concentrated in the company you work for (risky)
- You have to wait to access the cash
Here's My Take (For Most People)
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If you're building wealth and still have years until retirement: Selling immediately and reinvesting in a diversified portfolio usually makes more sense. You lock in the guaranteed 10% gain, reduce concentration risk, and build a more balanced retirement portfolio.
If you already have a solid, diversified retirement plan: You might consider holding some shares if you believe in HCA's long-term growth. But don't let ESPP shares become a huge percentage of your net worth.
A balanced approach: Some people do a mix. Sell half immediately to lock in gains and reduce risk. Hold half if you want some upside exposure.
The Concentration Risk Problem
Here's something a lot of HCA employees don't think about: if you work for HCA and you're accumulating a lot of HCA stock through the ESPP, you're doubling down on risk.
Your paycheck comes from HCA. Your health insurance comes from HCA. Your 401(k) match comes from HCA. And now a big chunk of your investments are in HCA stock?
If something happens to the company (economic downturn, industry disruption, anything), you're exposed on multiple fronts.
This is why most financial advisors recommend keeping company stock to no more than 10% to 15% of your total investment portfolio.
If You're Early in Your Career: Start Strong
Maybe you're 30 or 35, you just started at HCA a few years ago, and retirement feels like a lifetime away. Here's what you should focus on now.
1. Get That Full Match
You're probably getting a 3% or 4% match right now (depending on your years of service). Contribute at least that much. If you're only doing 3% and you're getting a 4% match, bump it up. That's free money you're walking away from.
2. Increase Your Contribution Every Year
Every time you get a raise or a cost-of-living adjustment, increase your HCA 401(k) contribution by 1%. You won't even miss it because you're still taking home more than before.
Example: You make $60,000 and contribute 5% ($3,000/year). You get a 3% raise to $61,800. Increase your contribution to 6% ($3,708/year). You're saving more, but your paycheck still went up.
Do this every year and by the time you're 50, you'll be maxing out your HCA 401(k) without even thinking about it.
3. Use the ESPP Strategically
The 10% discount is a great deal, but here's what I'd recommend for younger HCA employees:
Participate in the HCA ESPP, but consider selling the shares immediately and reinvest the proceeds into a diversified portfolio (either in your 401(k), a Roth IRA, or a brokerage account).
Why? Because you're young and you need diversification, not concentration in one company. Lock in the 10% gain and build a balanced portfolio across different stocks, bonds, and sectors.
Over 20 to 30 years, that disciplined approach (contribute to ESPP, sell immediately, diversify) can add significant wealth to your retirement plan.
4. Don't Ignore the Roth Option
If HCA offers a Roth 401(k) option (many plans do), consider contributing at least some of your money to Roth, especially if you're in a lower tax bracket now.
Why? You pay taxes now (when your income is lower) and the money grows tax-free forever. When you're 65 and pulling money out, it's all yours. No taxes.
This is especially powerful if you're early in your career and expect to earn more later.
5. Don't Cash Out Your 401(k) If You Leave
If you leave HCA for another job, don't cash out your 401(k). Roll it into an IRA or your new employer's 401(k). Cashing it out means taxes, penalties, and losing years of compounding growth.
Real Example: What This Looks Like for an HCA Employee Nearing Retirement
Let's say you're 60 years old, you've worked at HCA for 22 years, and you're thinking about retiring in the next few years.
Your HCA 401(k) situation:
- You're getting an 8% match (based on 22 years of service)
- You're contributing 10% of your $90,000 salary = $9,000/year
- HCA contributes $7,200/year (8% of $90,000)
- You're catching up, so you contribute an extra $7,500/year (for a total of $16,500)
- Total going into your 401(k): $23,700/year
Your HCA ESPP situation:
- You've been contributing $500/month ($6,000/year) to the ESPP
- Every quarter, you buy HCA stock at a 10% discount
- You've been selling immediately and putting the profits into a diversified brokerage account
- Over the past 5 years, that's been an extra $3,000+ in gains (after taxes)
The result: You're likely on track to retire comfortably because you've been maximizing both benefits and not letting ESPP concentration become a problem.
What to Do If You're Planning to Retire Soon
If you're within a few years of retirement, here's what you should be thinking about:
1. Max Out Your HCA 401(k) Match
These are your peak earning years. Consider contributing as much as you can, especially with catch-up contributions if you're 50+.
2. Consider Your HCA ESPP Strategy
If you've accumulated a lot of HCA stock over the years, now might be the time to start selling and diversifying. You don't want to go into retirement with too much concentration in one company's stock.
3. Plan Your HCA 401(k) Rollover
When you retire, you'll need to decide what to do with your HCA 401(k). Roll it to an IRA? Leave it at HCA? We can help you think through that decision.
4. Coordinate with Your Overall Retirement Plan
Your HCA 401(k) and HCA ESPP are just pieces of your retirement puzzle. You also need to think about Social Security timing, healthcare before Medicare, creating retirement income, taxes, and more.
Bottom Line: You've Got Great Benefits at Every Stage
Whether you're 30 and just starting your career or 60 and planning your retirement, HCA offers solid benefits. The HCA 401(k) match is generous (especially if you've been there a while), and the HCA ESPP gives you a built-in 10% gain if you use it strategically.
But benefits alone don't create financial success. You need a plan that fits where you are in life.
If you're building wealth: We can help you maximize your HCA 401(k) contributions, use the HCA ESPP strategically, and create a plan to build long-term financial security.
If you're approaching retirement: We can help you figure out how to maximize your benefits before you retire, when to claim Social Security, how to roll over your HCA 401(k), and whether you're actually ready to retire (or if you need a few more years).
Have Questions About your HCA 401k or ESPP?
I work with HCA employees. Schedule your complimentary 30-minute consultation. In our half our meeting we'll have a general educational discussion to gain perspective on:
- Employer retirement and stock plan optimization
- A high-level retirement readiness check
This session does not require any commitment to ongoing services. Schedule your time below.
Important Disclosure: This article is for general educational purposes only and should not be considered personalized financial or investment advice. HCA Healthcare benefit plan details are based on the 2025 benefits brochure and are subject to change. You should review your specific plan documents and consult with a qualified financial advisor before making any decisions about your 401(k), ESPP, or retirement planning. This content does not create a client-advisor relationship.
