403(b) plan
Welcome to your Baptist Health Jacksonville 403(b) Retirement Plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
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Who is eligible?
All employees are eligible to participate in the plan upon date of hire. There is no age or service requirement for eligible employees to make pretax deferrals and/or Roth after-tax contributions to the plan.
For new hires, Baptist Health System, Inc. will automatically withhold 3% of your compensation per pay period (referred to as the “automatic deferral percentage”), and will defer it to the 403(b) on a pretax basis.
Within 90 days of the first paycheck deduction, you may elect a distribution of your automatic deferrals and investment earnings by completing a Permissible Withdrawal Form. You will pay income tax on the distributed amount but will not be subject to the 10% federal early withdrawal tax penalty, even if you receive the distribution prior to age 59 ½.
For employer contributions, you must complete at least one (1) year of service. In addition to the initial eligibility requirements, you must have completed a year of service for that plan year in order to share in the employer contributions. This is waived in the year of retirement, death or disability.
Certain employees are excluded from the employer contributions. Please refer to your SPD for additional information.
Starting early has its advantages
Employee contributions
You may increase or decrease the amount you contribute to the plan as often as your employer allows.
This limit applies to your total pretax and Roth contributions.
Additional catch-up contributions
You might be eligible to contribute:
Stop/change contributions
You may change your contribution amount or discontinue contributing to your plan at any time and resume contributing again later, subject to your employer’s plan provisions. In the meantime, your account will continue to grow on a tax-deferred basis.
Employer contributions
The employer match is 35% of elective deferrals up to 5% of compensation. Your employer has the discretion to vary the employer matching formula. The employer match is made on a payroll basis.
The non-elective contribution is based on years of service beginning January 1, 2004. Your employer has the discretion to vary the employer non-elective formula. The non-elective contribution is made on an annual basis.
Employer contributions schedule
| Years | Percentage |
|---|---|
| 1-4 years: | 2.25% |
| 5- 9 years: | 3% |
| 10-14 years: | 4% |
| 15- 19 years: | 5% |
| 20 or more years: | 5.50% |
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in your own contributions.
For employer contributions, the following vesting schedule applies:
Vesting schedule
| Years | Percentage |
|---|---|
| 1 year of service: | 0% |
| 2 years of service: | 33 1/3% |
| 3 years of service: | 66 2/3% |
| 4 or more years of service: | 100% |
Accessing your money before retirement
Withdrawals
A 10% federal tax penalty can apply to withdrawals prior to age 59½.
Money can be withdrawn from your 403(b) plan in these events:
Attaining age 59½ (available for employee elective deferrals, rollover accounts and any employer contribution account that is 100% vested)
Retirement or separation from service (distributions where the employee retires or separates from service on or after age 55 are not subject to the 10% early withdrawal federal tax penalty)
Your death or total disability
Hardship withdrawals (employee contributions and rollovers only)
Bear in mind that income taxes are payable upon withdrawal.
Corebridge Retirement Services offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on your employer’s plan provisions, your withdrawal options include:
Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts rollovers
Receiving systematic withdrawals
Taking a lump-sum distribution
Choosing one of the many annuity options available from Corebridge
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 tax penalty for early withdrawal may apply to distributions taken prior to attainment of age 59½.
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.
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.
Loans
Loans are available on employee elective deferrals, rollover accounts and any employer contribution account that is 100% vested. You may have only one outstanding loan at a time.
Tax-free loans make it possible for you to access your account, subject to certain limitations, without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.
An array of investment choices
Performance
The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
Please note, investment values will fluctuate so that investments, when redeemed, may be worth more or less than their original cost.
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.
RO2767020(03/2023)