403b plan
An excellent way to save for retirement
Welcome to the website Corebridge Retirement Services has created especially for you, as an employee eligible to participate in the Adena Health System 403(b) retirement plan. Corebridge, an industry leader in working with retirement plans sponsored by healthcare providers, has been chosen as a provider for your retirement plan and is committed to providing personal service whenever and wherever it is convenient for you.
The Plan Highlights is not your Summary Plan Description. The administration of this plan is governed by the actual plan documents. If discrepancies arise between this information and the plan documents, the plan documents will govern.
Take advantage today
Participation in the 403(b) plan is open to all employees except leased employees. You are automatically enrolled in the plan on your date of hire. Adena Health System will deduct 3% of your compensation from each biweekly paycheck, pretax, and deposit it in your retirement account. Additionally, each July 1st, Adena will increase your contribution rate 1%, up to a maximum of 6%, unless you make an active election to change it.
Starting early has its advantages
Employee 403(b) voluntary contributions
You are automatically enrolled in the plan on your date of hire. Adena Health System will deduct 3% of your compensation from each biweekly paycheck, pretax, and deposit it in your retirement account. Additionally, each July 1st, Adena will increase your contribution rate 1%, up to a maximum of 6%, unless you make an active election to change it.
Through payroll deduction, your plan allows you to make pretax contributions up to the maximum allowed IRS contribution limit. Your voluntary contributions will be invested in the T. Rowe Price Target Maturity funds based on your date of birth unless you make an active election to change it.
You can also make after-tax contributions to a Roth account. Contact your financial professional for more information.
If you have an existing qualified retirement plan (pretax) account with a prior employer or hold a traditional IRA account, you can transfer or roll over that account into the plan on becoming a participant in the plan.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Stop or change contributions
You may stop your contributions anytime. Once you discontinue contributions, you may only start again as provided under the terms of the plan.
You can increase or decrease the amount of your contributions as soon as administratively feasible.
Employer matching contributions
The plan also provides for Adena Health System to make contributions to your retirement plan. Adena will match your contribution 100% on your first 4%, then an additional 50% of the next 2% you contribute, for a maximum of 5% matching contributions to your retirement plan.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account.
You are always 100% vested in employee 403(b) contributions, and rollover contributions, plus any earnings they generate.
The matching contributions are vested in a 2 year cliff schedule. During your first year of service you are not vested (0%), but at the time in which you earn your second year of service, you will be 100% vested. If you work at least 1,000 hours in any year, you will earn a year of service.
Accessing your money before retirement
Withdrawals
Money can be withdrawn from the plan in these events:
- Your retirement
- Your attaining age 59½
- Death
- Disability
- Severance from employment
Income taxes are payable upon withdrawal and federal restrictions and a 10% federal early withdrawal penalty may apply to withdrawals taken prior to age 59½. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Hardship withdrawals
If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions. A hardship may include:
Purchase of a principal residence
College tuition and approved related expenses for you, your spouse or dependents
Non-reimbursable medical and/or dental expenses for you, your spouse or dependents
Payment to prevent eviction from or foreclosure on your principal residence
Payment for burial or funeral expenses for your deceased parent, spouse, or children
Payment for expenses for the repair of your principal residence
If you feel you are facing a financial hardship, you should see your financial professional for more details.
Loans
The plan is intended to help you put aside money for your retirement. However, Adena Health System has included a plan feature that enables you to access money from the plan tax free without permanently reducing your account.
The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: 100% of your vested account balance up to $10,000, or 50% of your vested account balance for loans in excess of $10,000, not to exceed $50,000.
Loans can be taken from your salary deferrals only.
The minimum loan amount is $1,000.
All loans must generally be repaid within five years. A longer term may be available if the loan is to be used to purchase your principal residence.
Loan repayment is automatic through the Automatic Clearing House (ACH).
You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%.
A $50 processing fee for all new loans and a $50 per year loan maintenance fee are charged to your account.
If you default by not making a payment of principal or interest when due, or within any grace period permitted at the discretion of the Plan Administrator, the loan will be treated as a taxable deemed distribution to you as required by law.
Unpaid loan amounts will be taxed as ordinary income and may incur a 10% federal early withdrawal penalty if you are 59½.
Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. Refer to the Summary Plan Description for more details about this participant loan feature.
An array of investment choices
Performance
The following mutual funds and a fixed-interest option are available in your Adena Health System 403(b) retirement plan. They provide you with flexibility to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
To view or print a prospectus, access “Prospectuses and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
Fixed-interest option transfer restrictions
Generally, you may transfer assets from the Fixed-Interest Option into equity options at any time and, after 90 days, from equity options into another fixed income option such as a money market fund, a stable-value fund or certain short term bond funds, if such competing options are allowed in the plan.
Administrative charges
A flat $20 annual fee, along with an annual charge of .025% will be assessed on mutual fund assets in the plan for which administrative services are provided. This does not apply to the Fixed-Interest Option. Additionally, Fund Annual Operating Expenses apply depending on the mutual fund chosen and are described in the prospectus.
See the Revenue Sharing Policy for information on how mutual funds impact your administrative charges.
RO 2767020 (03/2023)