403(b) plan
Welcome to your Covenant Ministries of Benevolence 403(b) plan features. 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.
Take advantage today
Participation in the plan is open to all employees. There are no age or service requirements for eligible employees to participate in the plan.
Starting early has its advantages
Employee contributions
Through payroll deduction, your plan allows you to make pretax and/or Roth (after-tax) contributions up to the maximum IRS contribution limit.
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.
Rollovers or transfers
If you have funds in an existing qualified retirement plan (pretax) or 403(b) tax-deferred arrangement 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.
Catch-up contributions
You may contribute an additional catch-up amount if you meet the following condition.
Employer contributions
Covenant Ministries of Benevolence will match 100% of your contribution up to 3% of compensation.
Vesting
You are always 100% vested in any accumulation attributable to employee contributions or rollovers you make into the plan. Accumulations attributable to employer match contributions are vested after completing 3 years of service.
Investment choices
You decide how to invest your plan account, selecting from investment choices provided under the plan, as determined by Covenant Ministries of Benevolence.
- You can change your investment choices anytime.
- View the available funds and historical performance available to Covenant Ministries of Benevolence plan participants.
- In addition to various mutual funds, your plan offers the Schwab Personal Choice Retirement Account®.
Schwab Personal Choice Retirement Account
- $50 annual fee.
- Minimum investment applies.
- Operating expenses will vary based on funds selected. VALIC does not charge an administration fee for self-directed brokerage.
- Schwab’s standard transaction fee will be charged on each redemption of fund shares bought with no transaction fee and held for 90 days or less. Schwab reserves the right to assess Schwab’s standard transaction fees in the future should short-term trading become excessive. Schwab receives remuneration from Mutual Fund OneSource companies. Schwab reserves the right to change the funds made available without transaction fees.
For a prospectus containing more complete information on the Schwab account, including management fees, charges and expenses, please call the Dedicated PCRA Call Center at 1.888.393.PCRA (7272). Please read the prospectus carefully before you invest or transfer money.
Accessing your money before retirement
Withdrawals
Money can be withdrawn from the plan in these events:
- Attainment of age 59½.
- Death.
- 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 and federal restrictions and a 10% tax penalty may apply to early withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
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.
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 federal tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.
- Loans can be taken from Employee Elective Deferrals and Employer Contribution made by Covenant Ministries of Benevolence prior to January 1, 2009.
- The minimum loan amount is $1,000.
- All loans must generally be repaid within five years. A longer term 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 shall be established by the Provider and shall be a reasonable rate in light of other loans involving comparable risks.
- A $50.00 processing fee for all new loans and a $30.00 per year maintenance fee are charged to your account.
Please note that loans are not available to employees of Swedish Covenant Hospital and Life Center on the Green.
Upon loan default, loan amounts will be taxed as ordinary income and may incur a 10% federal tax penalty if the employee is under the age of 59½.
Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please contact your financial professional.
An array of investment choices
The mutual funds available in your 403(b) retirement plan will 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.
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)