Care New England 457(b) plan
Plan features
Care New England Retirement Plan 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. Your account benefits from the opportunity for tax-advantaged growth.
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
An employee becomes eligible to participate as of the first day of the month coincident or next following his designation by the employer to be a participant in the plan.
Starting early has its advantages
Employee contributions
Generally, you may contribute as much as 100% of your annual includible compensation up to the maximum allowed by the Internal Revenue Code (IRS).
Also, in addition to this contribution, you may also contribute up to the maximum allowed by the IRS in the 403(b) plan.
Election must be made before the first day of the plan year, except in first year of participation in which election must be made by the first day of the month coincident with or next following designation by the employer as a participant.
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.
Under a 457(b) plan, an election start, change or stop contributions will become effective no sooner than the first pay period of the month following the date the election is made.
Account consolidation
You might be able to transfer your vested retirement account balance from a prior employer’s plan to your Care New England Retirement Plan with Corebridge Retirement Services. This may be a way to simplify your financial profile and to ensure your overall investments are suitably diversified and consistent with your investment preferences. However, before moving funds, check with your other provider to determine if your account has any restrictions, imposes a withdrawal penalty or provides favorable terms.
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.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in contributions made to the plan.
Accessing your money
Withdrawals
Your plan was established to encourage long-term savings. Unlike many other plan types, there is no 10% federal early withdrawal tax penalty for early withdrawals because this is an unfunded deferred compensation plan rather than a defined contribution plan. Participants have the status of general unsecured creditors of the employer.
Time and Commencement of Benefit Payments
Normal Retirement or Disability Retirement: Participants whose employment has terminated shall have distribution commence sixty days following their Normal Retirement Date (age 65) or disability, unless the participant irrevocably elects in writing to defer receipt of the account, provided that such written election is received by the Administrator 180 days prior to the date the payment of benefits is to begin.
Pre-retirement Termination of Employment:
Termination of employment for any reason other than Normal Retirement, disability or death, distribution shall begin the later of:
- The 60th day following the participant’s termination of employment, or
- The 60th day after the date specified in the participant’s irrevocable written election to defer payment, provided that the written election is received by the Administrator at least 180 days prior to the date specified in the election.
Latest Commencement Date:
The later of April 1 of the calendar year following in the year in which the participant attains age 70½ or retires.
Distribution options
You plan offers the following distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on plan provisions, your withdrawal options include:
- A single lump-sum payment; or
- Approximately equal installments (at least annually) over a period of five (5) years
Generally, income taxes must be paid on all amounts you withdraw from your plan.
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.
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 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, participants 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)