401(k) plan
Plan details
This page provides information regarding the Lehigh Valley Health Network, Inc. 401(k) Savings Plan. If you are looking for information on another LVHN retirement plan, please visit the Plan Related Documents page.
The plan highlights noted below 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.
You may also view print friendly 401(k) plan highlights below:
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Who is eligible?
To participate in the 401(k) Plan, you are eligible upon date of hire. Leased employees, union employees and employees participating under the 403(b) Plan are not eligible to participate in the 401(k) Plan.
For employer matching contributions, certain employees are excluded from the employer contributions including independent contractors, employees covered by postgradute education agreement (residents), employees on long term disability who are receiving payment from the long-term disability plan; prior to January 1, 2007, employees who were leased to Muhlenberg Primary Care (MPC) and were covered by MPC’s 401(k) Plan; and prior to January 1, 2017, employees currently covered and currently eligible for accruals under the legacy benefit formula under the Lehigh Valley Health Network, Inc. Retirement Plan. Please refer to your SPD for additional information.
Colleagues hired on or after January 1, 2022
To become eligible for employer match contributions, participants must work 1,000 hours in the 12-month period following their hire date. If 1,000 hours is not achieved, then they will become eligible after completing 1,000 hours of serve at the end of any following plan year. Once eligibility is achieved, participants will begin receiving matching contributions on the next payroll date.
Colleagues hired prior to January 1, 2022
Participants are immediately eligible to receive employer match contributions.
All participants
To receive any matching contributions, participants must be employed on the last day of the plan year. Participants who terminate due to normal retirement, early retirement at age 55 (as defined by the plan), death or disability (as defined by the plan), will not be required to be employed on the last day of the plan year.
Starting early has its advantages
Employee contributions
Unless you elect to opt out of the plan or elect a different percentage, you will be automatically enrolled into the Plan at 2% of compensation beginning on the third pay period following date of hire. You may increase or decrease the amount you contribute to the plan as often as your employer allows.
Additional catch-up contributions
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. In the meantime, your account will continue to grow on a tax-deferred basis.
Employer contributions
Employer matching contributions shall be made at a rate equal to 50 percent of the Elective Deferrals up to 4% of Compensation. The Employer shall have discretion to vary the rate of employer matching contributions. The contribution will be made on a payroll basis.
Vesting
Employee contributions
You are always 100% vested in your own employee deferrals into the plan.
Employer matching contributions
You are vested in any employer contributions, along with any earnings they generate, based on the following schedule:
Participants hired on or after January 1, 2022
- Less than three years of service: 0%
- Three or more years of service: 100%
One year of vesting service is equal to 1000 hours in a plan year.
Participants hired prior to January 1, 20221
- 100% vested in employer contributions
1 This includes participants who were originally hired before Jan. 1, 2022 and rehired on or after Jan. 1, 2022.
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.
Accessing your money
Withdrawals
Money can be withdrawn from your 401(a) plan in these events:
- A 10% federal tax penalty can apply to withdrawals prior to age 59½.
Money can be withdrawn from your 401(k) plan in these events:
- Attaining age 59½ (employee deferrals only)
- Retirement or separation from service
- Your death
- Qualified birth or adoption withdrawal within one year from the date of birth or adoption (not subject to the 10% early withdrawal penalty)
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.
Depending on your employer’s plan provisions, your withdrawal options include taking a lump-sum distribution.
Bear in mind that income taxes are payable upon withdrawal. 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.
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 tax penalty if you are under age 59½. Loans are available on all accounts under the Plan. Only one outstanding loan allowed at a time.
An array of investment choices
The following funds are available in your 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.
Bear in mind that all investment involves risk and possible loss of principal. Investment values will fluctuate so that investments, when redeemed, may be worth more or less than their original cost.
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)