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Take advantage today

You are immediately eligible to begin contributing to the plan.

Starting early has its advantages

Contributions
Generally, you may contribute as much as 100% of your annual includible compensation up to the maximum IRS contribution limit. You may increase or decrease the amount you contribute to the plan as often as your employer allows.

2024 contribution limit

Your contribution limit for 2024 is $23,000.

Catch-up contributions
You may be able to contribute additional catch-up amounts if you meet the following conditions.

2024 catch - up contributions

> An additional $3,000 if you have 15 more years of service and have undercontributed in prior years, and 

> An additional $7,500 if you are age 50 or older.

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 and any administrative requirements. In the meantime, your account will continue to grow on a tax-deferred basis.


Vesting
You are always 100% vested in your own contributions.

Pretax or Roth contributions
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.

Converting retirement funds to a Roth account
Your employer’s plan permits you to convert a portion of your tax-deferred retirement account into a Roth account under the plan. Bear in mind, you must pay income tax on the converted funds for the year in which the conversion occurs. You may only elect such a conversion if you are eligible for a distribution of the converted amount, and only to the extent that the plan permits. This may include either a post-retirement conversion or an in service conversion if the plan permits. 

Your financial professional can assist you in determining your eligibility. Limitations under the plan may apply.

Accessing your money before retirement

Withdrawals
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty. 

Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
 

  • Attaining age 59½

  • Retirement or separation from service

  • Your death or total disability

  • Hardship

The following are events upon which you may withdraw vested amounts without incurring a 10% federal tax penalty:
 

  • Attaining age 59½

  • Separation from service on or after age 55

  • Your death or total disability

  • Taking substantially equal payments after separation from service for a period of five years or attainment of 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
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 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 tax penalty for early withdrawal may apply to distributions taken prior to attainment of age 59½.
 
Consult your financial professional for more specific information. 

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
Tax-free loans make it possible for you to access your account 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.

RO2767020(03/2023)