Take advantage today

As an employee, you are eligible to elect to participate in the 403(b) plan if you are:

• A regular employee employed one half time or more.
• Any other employee expected to work 1000 hours or more in a year, but not including nonresident aliens as described in the Code, Section 410(b)(3)(c) nor students performing services described in the Code, Section 3121(b)(10).

You may elect to become a participant by completing an election agreement to reduce your compensation (and have that amount contributed as an Elective Deferral and/or Roth 403(b) Contributions) and filing it with the Plan Administrator.

Starting early has its advantages

Employee contributions

You may contribute as much as 100% of your annual includible compensation up to limit for that year. You may increase or decrease the amount you contribute to the plan as often as your employer allows. 

You have a choice regarding your elective contributions to your workplace 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.  

You may change your contributions 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. 

Catch-up contributions

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan account. Participants are 100% vested in the plan immediately upon commencing participation.

Accessing your money before retirement

Withdrawals

Money can be withdrawn from the plan in these events:

• Your retirement 
• Reached age 59½
• Death 
• Disability
• Severance from employment 

Income taxes are payable upon withdrawal and federal restrictions and a 10% federal early withdrawal penalty may apply to withdrawals prior to age 59½. Be sure to talk with your tax advisor before withdrawing any money from your plan account. 

Loans

The plan is intended to help you put aside money for your retirement. However, tax-free loans are available subject to plan rules and make it possible for you to access your account without permanently reducing your account balance. Loans are available on employee elective deferrals only. 

Please note that defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal penalty if you are under age 59½.

Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional.