The Arc New York 403(b) retirement plan
Welcome to The Arc New York 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The below information is intended to provide a high level overview of The Arc New York plans. Specific plan details vary by Chapter. Please review your Chapter’s Plan Highlights for your Chapter’s information.
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Employee contributions
Participation in the plan is open to all employees.
Employer contributions
You are eligible to participate in the employer matching contributions portion of the plan on the first payroll period beginning after the date that eligibility requirements are met.
Starting early has its advantages
Employee contributions
Through payroll deduction, you may contribute pretax dollars automatically by convenient payroll reduction, which might lower current income taxes. You may also make after-tax contributions to a Roth account.
If you have an existing qualified retirement plan (pretax), qualified retirement plan (after-tax), 403(b) tax-deferred arrangement 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.
Catch-up contributions
You may be able to make catch-up contributions depending on your Chapter's plan document. The catch-up contributions are as follows:
Employer contributions
The plan also provides for The Arc of New York to make contributions.
The employer has the discretion to vary the matching contributions annually.
The employer matching contributions benefit all eligible participants who complete a year of service unless terminated due to death, disability or retirement.
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 contributions, and rollover contributions, plus any earnings they generate.
Employer contributions to the plan, plus any earnings they generate, are vested according to each Chapter’s Plan Highlights. Please review your Chapter’s Plan Highlights for specific information.
Accessing your money
Withdrawal restrictions
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal tax penalty.
Generally, depending on plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
- Reaching age 59½
- Retirement or severance from employment
- Your death or total disability
- Hardship
The following are events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:
- Reaching age 59½
- Severance from employment on or after age 55
- Your death or total disability
- Taking substantially equal payments for a period of five years or upon reaching age 59½, whichever is later
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.
Distribution options
Your plan offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on plan provisions, your withdrawal options include:
- Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts transfers of rollovers
- Electing systematic or partial withdrawals
- Taking a lump-sum distribution
- Choosing one of the many annuity options available
- Taking the Required Minimum Distributions when required by law
Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to distributions taken prior to reaching age 59½.
Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that (1) is withdrawn after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) is after reaching age 59½, death or disability.
Consult your financial professional for more specific information.
Tax-free loans
The plan is intended to help you put aside money for your retirement. However, The Arc of New York has included a plan feature that enables you to access money from the plan tax free without permanently reducing your account.
The origination fee and maintenance fee for each loan varies by Chapter. You may have a maximum of two loans.
RO2767020(03/2023)