401(a) Money Purchase Plan
Welcome to the Macomb-Oakland Regional Medical Center 401(a) retirement plan. Review the features and highlights of your employer’s retirement plan below.
This is not your plan document or your Summary Plan Description. The administration of each plan is governed by the actual plan document. If discrepancies arise between this brochure and the plan document, the plan document will govern.
All employees are eligible to participate except for certain excluded categories.
Excluded categories include:
- Leased employees
- Independent contractors
- Summer interns
- Cooperative students
- Vocational workers
Employer contributions
Beginning immediately upon your date of hire, Macomb-Oakland Regional Center will contribute an amount equal to 10% of your eligible compensation.
Catch-up contributions
You may qualify for a higher level of elective contributions than those described above if certain requirements are met:
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account.
You will be vested in employer contributions to your account as follows:
Employer Matching Vesting Schedule
Years of service | Vesting percentage |
---|---|
Fewer than 3 | 0% |
3 or more | 100% |
Accessing your money
Withdrawals
Your plans were 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:
- Retirement or severance from employment
- Your death or total disability
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.
Consult your financial professional for more specific information.
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 such as a joint and survivor annuity or a single life annuity
- Deferring distributions until a later date, allowing your account to continue to grow tax-deferred (Required Minimum Distributions apply)
Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to distributions taken prior to reaching age 59½.
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.
Loans are not available
No loans are available in this plan.
Available funds & performance
You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under Macomb-Oakland Regional Center retirement plans.
* Policy Form series GFUA-398, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.
Remember, this plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind that investing involves risk, including possible loss of principal.
Administrative fee
To make the administrative cost of the retirement plans more transparent, the following retirement plan fee arrangement will be assessed.
An annual flat rate of $50.00 ($12.50 per quarter) will be charged per participant and an additional annual fee of 11 basis points (.11%) will be charged on all account values based on your investment allocations.
In addition, an annual consultant fee of 8 basis points (.08) will be charged on all account values based on your investment allocations.
Fixed-Interest Option transfer restrictions
Generally, participants may transfer assets from the Fixed-Interest Option into equity options at any time and, after 90 days, from equity options into another fixed-income option such as a money market fund, a stable value fund or certain short-term bond funds, if such "competing options" are allowed in the plan.
RO2767020(03/2023)