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403(b)/401(a) plan

Welcome to your 403(b) and 401(a) retirement plan. 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 plans is open to all employees.

There is no age or service requirement to participate in the 403(b) plan. The plans do not allow participation in the employer contribution portion by employees who are leased employees.

To participate in the employer contribution portion of the plans, employees must have completed one year of service, as defined by the plan.

To participate in the employer matching contribution portion of the plans, employees must have:

  • Attained age 21 
  • Completed one year of service, as defined by the plan.

The employee may join on the 1st day of the calendar quarter after the employee has satisfied the eligibility requirements. The Plan Administrator may choose to allow earlier entry dates to facilitate administration of the plans.

Starting early has its advantages

Your contributions

Through payroll deduction, your Franciscan Alliance Retirement Plan allows you to make pre-tax and Roth contributions up to the maximum allowed by the Internal Revenue Service (IRS) contribution limit. Special catch-up provisions may also be available.

You may stop your contributions at any time. Once you discontinue contributions, you may only start again as provided under the terms of the Plan. You can increase or decrease your contributions as soon as administratively feasible.

2024 contribution limit

Your contribution limit for 2024 is $23,000.

Rollovers or transfers

If you have an existing qualified retirement plan (pre-tax), 403(b) tax-deferred arrangement or deferred compensation plan account with a prior employer or hold a traditional IRA account, you may transfer or roll over that account into the Plan anytime. 

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 employee contributions and rollover contributions, plus any earnings they generate for the 403(b) plan. 

Employer contributions to the plans, plus any earnings they generate, are vested as follows for the 401(a) plan: 

Vesting schedule

Years of ServiceVested Percentage
Less than 3 years0%
3 or more years100%

Accessing your money

Withdrawals

Money may be withdrawn from the plans in these events:

  • Retirement at the plan's normal retirement age of 65

  • Your attaining age 59½

  • Death

  • Severance from employment

Income taxes are payable upon withdrawal and federal restrictions and a 10% tax penalty may apply to early withdrawals prior to page 59½. 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.

If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions. A hardship may include: 

  • purchase of a principal residence.

  • college tuition and approved related expenses for you, your spouse or dependents,

  • non-reimbursable medical and/or dental expenses for you, your spouse or dependents, or

  • payment to prevent eviction from or foreclosure on your principal residence.

If you feel you are facing financial hardship, you should see your financial professional for more details.

Loans

The plans are intended to help you put aside money for your retirement. However, Franciscan Alliance, Inc. has included a plan feature that enables you to access money from the plans tax free without permanently reducing your account.

  • The amount the plans may loan to you is limited by rules under tax law. All loans will be limited to the lesser of: 100% of the vested account balance up to $10,000, or 50% of the vested account balance for loans in excess of $10,000, not to exceed $50,000.

  • Loans may be taken from rollover accounts.

  • 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.

  • The minimum loan amount is $1,000.00.

  • You may have one loan outstanding at a time.

  • You pay interest back to your account. The interest rate on your loan will be Prime Rate plus 2%.

  •  A $50.00 processing fee for all new loans and a $30.00 per year maintenance fee are charged to your account.

Defaulted loan amounts will be taxed as ordinary income and may incur a 10% federal tax penalty if the employee is under age 59½. Other requirements and limits must be met prior to borrowing money from your accounts. For additional information regarding loans, please see your financial professional. 

An array of investment choices

The following mutual funds are available in your Franciscan Alliance Retirement Plan. They 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.

RO 2767020 (03/2023)