VNA of Care New England 403(b) 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.
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Participation
Participation in the plan is open to all eligible employees who have met the following requirements:
- Attained age 21
- Completed one year of service, as defined by the plan.
You can begin making pretax or Roth after-tax contributions to the plan on the date coinciding with the date on which the eligibility requirements are met.
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.
Pretax or 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 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 anytime. You can change your investment choices quarterly.
Employer contributions
The plan also provides for Care New England to make contributions.
- Care New England can also make a safe harbor nonelective contribution at its discretion, which will be allocated to all eligible employees.
- Employer matching contributions will not be made in the same plan year that a safe harbor contribution is made.
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.
Employees are vested according to the following schedule:
- Fewer than three years of service = 0% vesting
- Three years of service or more = 100% vesting
Accessing your money
Withdrawals
Money may be withdrawn from the plan in these events:
- Attainment of age 59½
- Death
- Disability
- Severance from employment
- Financial hardship (Hardship withdrawals may be made from salary reduction contributions only, not from earnings on those contributions.)
Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may apply if taken before 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.
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. A longer term of 15 years may be available if the loan is to be used to purchase your principal residence.
- 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 VNA of Care New England 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)