403(b) plan
Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plans.
The Plan Highlights is not your Summary Plan Description. The administration of this plan is governed by the actual plan documents. If discrepancies arise between this information and the plan documents, the plan documents will govern.
All employees are eligible to contribute to the plan upon the date of hire through salary deferral contributions.
Employer matching contributions after completion of a 6-month period of service. Those excluded from employer matching contributions are as follows:
- Per Diem Employees
- Employees who normally work less than 20 hours per week
Your contributions
Generally, you may contribute as much as 80% of your annual includible compensation up to the maximum allowed by the IRS for the year.
Catch-up contributions
You may be able to contribute up to an additional:
If eligible for both catch-up contributions above, you must exhaust the 15-year catch-up first.
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.
Stop/change contributions
Lawrence General Hospital may impose administrative limitations on when and how often you may start, stop or change the amount of your deferrals in any year. In the meantime, your account will continue to have the opportunity to grow on a tax-deferred basis.
Employer contributions
Lawrence General Hospital will match a percentage of your contributions. For employees with a date of hire before 1/1/2023, you are 100% vested for employer match contributions. For employees with a date of hire on or after 1/1/2023, you vest according to the following schedule:
- After 1 year of service = 33.33%
- After 2 years of service = 66.66%
- After 3 years of service = 100%
Employer matching contribution formula
- Matching contributions begin after 6 months of service.
- If you have between 6 months and 3 years of service, your matching contribution formula is 50% of your deferral up to 4% of your compensation.
- If you have more than 3 years of service, your matching contribution formula is 50% of your deferral up to 6% of your compensation.
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.
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 plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
- Reaching age 59½
- Retirement or severance from employment
- Your death or total disability
- Hardship (Employer contributions not available for hardship)
The following are events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:
- Reaching 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 upon reaching age 59½, whichever is later.
- Qualified birth or adoption withdrawal within one year from the date of birth or adoption.
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
Your plan offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on plan provisions, your withdrawal options include:
- Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts transfers of rollovers
- Electing systematic or partial withdrawals
- Taking a lump-sum distribution
- Choosing one of the many annuity options available
- Taking Required Minimum Distributions when required by law
Generally, income taxes must be paid on all taxable amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to taxable distributions taken prior to reaching age 59½.
Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that (1) is withdrawn after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) is after reaching age 59½, death or disability.
Consult your financial professional for more specific information.
Loans
Tax-free loans make it possible for you to access your account, subject to certain limitations, 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 early withdrawal tax penalty if you are under age 59½.
RO2767020(03/2023)
A 1267202 (10/2023)