403(b) plan
Plan features
Welcome to the Macomb-Oakland Regional Medical Center 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
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.
Take advantage today
You are automatically enrolled in the plan on your date of hire. All employees are eligible to participate except for certain excluded categories.
Excluded categories include participants in another employer-maintained plan.
Starting early has its advantages
Employee contributions
Macomb-Oakland Regional Center, Inc. will deduct 4% of your compensation from each biweekly paycheck, pretax, and deposit it in your retirement account. Your voluntary contributions will be invested in one of the T. Rowe Price Target Maturity funds based on your age.
You may increase your contributions and contribute as much as 100% of your annual includible compensation up to the annual IRS contribution limit. You may increase or decrease the amount you contribute to the plan as often as the plan allows.
Catch-up contributions
You might be eligible to contribute up to an additional:
If eligible for both catch-up contributions above, you must exhaust the 15-year catch-up first.
Employer contributions
Employer contributions are not accepted in the 403(b) plan.
However, Macomb-Oakland Regional Center, Inc. contributes to an account in your name in the 401(a) Money Purchase plan. For more information about your employer contributions, view the 401(a) plan details.
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.
Pretax or Roth contributions
You have a choice regarding your elective contributions to your 403(b) plan. 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
You may change your contribution amount or discontinue contributing to your 403(b) 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.
Guided Portfolio Services®
Guided Portfolio Services (GPS) is an optional service that offers two approaches to help you achieve your retirement goals. One approach is for do-it-yourselfers. The other is great for those who prefer to have someone else do it for them. Both approaches deliver objective advice from independent financial expert, Morningstar Investment Management LLC, including how much to save, which investments to choose, and how much to invest in each.
GPS is offered through VALIC Financial Advisors, Inc. and is available for an additional fee. For more information, contact your local financial professional.
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:
- Reaching age 59½
- Retirement or severance from employment
- Your death or total disability
- Hardship (403(b) plan only, from salary reduction contributions, not from earnings on those contributions)
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
- 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.
Qualified distributions from a Roth account (403(b) plan only) 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.
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
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.
An array of investment choices
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 403(b) retirement plan.
* 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)