Care New England 403(b) Match & Savings plan
Plan features
Care New England affords you an excellent opportunity to help accumulate money for a secure retirement. You 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 in the plan by convenient payroll deduction. In addition, Care New England will contribute to the plan on your behalf as outlined below. Your account benefits from the opportunity for tax-advantaged growth.
Click below to view the features and highlights of your employer’s retirement plans.
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.
Take advantage today
Participation
All eligible employees can make contributions to the plan immediately.
Starting early has its advantages
Employee contributions
Through payroll deduction, your plan allows you to make pretax contributions up to the maximum allowed by the Internal Revenue Code.
If you have an existing qualified retirement plan (pretax), 403(b) tax-deferred arrangement or deferred compensation plan account with a prior employer, 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.
Roth contributions
You may also make after-tax contributions to a Roth account in the plan by convenient payroll deduction. You have a choice regarding your elective contributions. You can direct all of your contributions to a traditional pretax account, to a Roth account or to a combination of the two. Contributions to a Roth account are after-tax. Regardless of your election, you are subject to the annual contribution limits detailed previously.
Catch-up contributions
You may be able to contribute up to an additional:
Stop or change contributions
You may change your contribution amount or discontinue contributing to your plan at any time and resume contributing again later, subject to plan provisions and any administrative requirements. In the meantime, your account will continue to grow on a tax-deferred basis.
Employer contributions
The plan provides for Care New England to make contributions to eligible employees according to the following guidelines:
- Matching contributions are completed on an annual basis; participants are required to have 1,000 hours in order to receive the contribution.
- Matching contributions are completed on elective deferrals, age 50 or older catch-up contributions and Roth deferrals.
- The matching contribution formula is discretionary.
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. The vesting schedule for the employer contribution is shown below:
- Less than three years of service - 0% vesting
- More than three years of service - 100% vesting
Accessing your money
Withdrawals
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 withdrawals are permitted from pretax and Roth deferrals
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
- Taking a lump-sum distribution
- 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.
Loans
The plan is intended to help you put aside money for your retirement. However, your 403(b) plan includes a feature that lets you borrow money from 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: one-half of your vested account balance or $50,000.
- The minimum loan amount is $1,000.00.
- All loans must generally be repaid within five years.
- You can have one loan outstanding at a time.
- You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1.00%.
- A $50.00 processing fee for all new loans and a $50.00 per year loan maintenance fee are charged to your account.
Other requirements and limits must be met prior to borrowing money from your account. Refer to the Summary Plan Description for more details about this participant loan feature.
An array of investment choices
Funds & performance
You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under the Care New England 403(b) Match & Savings retirement plan.
Remember, this plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind that investing involves risk, including possible loss of principal.
* Policy Form series GFUA-398 — group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company.
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.
RO2767020(03/2023)