The Glens Falls Hospital Partnership 403(b) plan

All employees (with the exception of nonresident aliens) are eligible to contribute to this plan. All employees are eligible to receive employer contributions to their accounts in the plan, except for:
 

• Nonresident aliens
• Per diem employees
  

All newly hired employees will be automatically enrolled in the plan at 2% of compensation for the first year. There is an automatic enrollment provision that increases deferrals to 3% for the second year and 4% for the third year. 

The employee may opt out within 90 days of the first deferral and have those contributions returned to them. The employee must notify Human Resources in writing of their intent to “opt out” and have any contributions made up to that point returned to them. You may go online prior to the first deferral and change the deferral rate to something other than 2% (less or more) to avoid auto enroll.

Employee contributions

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

Catch-up  contributions

You may be able to contribute additional catch-up contributions.

Pretax or Roth 403(b) 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.
 

Employer contributions

For each $1 you contribute, Glens Falls Hospital will contribute $1 up to an amount equal to 4% of your compensation. If you were automatically enrolled in the plan, your pretax contribution will be automatically increased by 1% each year until your contributions reach 4% of compensation.

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

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in your own contributions.

You will be vested in employer contributions to your account as follows:
 

Vesting schedule

Withdrawal restrictions

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal 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:

• Turning age 59½
• Retirement or severance from employment
• Your death or total disability
• Hardship
  

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

• Turning age 59½
• Severance from employment on or after age 55
• Your death or total disability
• Taking substantially equal payments for a period of five years or reaching age 59½, whichever is later

Loans

Tax-free loans make it possible for you to access your account, subject to certain limitations, without permanently reducing your account balance. Minimum loan amount is $1,000. You may have only one outstanding loan at any time.

If you default (not repay on time) on a loan from your plan account, you cannot take out another loan. Also, defaulted loan amounts will be taxed as ordinary income and may be subject to a 10% federal early withdrawal tax penalty if you are under age 59½.

Loan repayments will be deducted directly from your paycheck.