Loans
Loans are not allowed with this plan.
457(b) plan
Welcome to your 457(b) retirement plan. View the features and highlights of your employer’s retirement plans below.
The Franciscan Alliance, Inc. nonqualified deferred compensation plan is a non-governmental 457(b) plan. This plan holds salary deferrals made to the nonqualified segment of the retirement program provided by Franciscan Alliance. You may participate in this plan only if you are participating to the maximum deferral limit in the 403(b) plan.
The plan highlights 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.
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Participation
Employees who are contributing the maximum allowable deferral to the 403(b) plan are eligible to participate in the 457(b) plan.
To participate in the 457(b) plan, you must meet with your financial professional to set up an account and complete a 457(b) Deferred Compensation Agreement to withhold tax-deferred contributions from your compensation. Online enrollment is not available for this plan.
Employees will enter the plan for purposes of making employee deferrals on the first day of the month following completion of the Deferred Compensation Agreement.
Starting early has its advantages
Your contributions
Employees contribute elective deferrals through a salary reduction agreement with Franciscan Alliance. These deferrals are limited to the maximum amount allowed by the Internal Revenue Service (IRS) contribution limit. Deferrals may not be made from severance payments.
Catch-up contributions
Catch-up contributions are not available for not-for-profit 457(b) plans. However, participants within three years of normal retirement age may make contributions up to two times the annual limit.
Employer contributions
Please note that there are no employer contributions made to this plan.
Rollovers or transfers
Distributions may not be rolled over to an IRA or a 401(k), 403(b) or 457(f) plan. Consult a tax professional before making a decision to move funds either into or out of a Corebridge Retirement Services account. However, plan-to-plan transfers are permitted to 457(b) plans of eligible employers, provided that the successor plan allows for such transfers and the participant has had severance from employment, subject to the successor 457(b) plan conditions.
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.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions plus any earnings they generate for the 457(b) plan.
Please note that all assets of the plan (employee deferrals) are owned by the employer and subject to creditors until distribution has been made to the participant. This is a non-governmental 457(b) plan.
Accessing your money
Withdrawals
Distributions from the plan may be made in the event of termination of employment.
Income taxes are payable upon withdrawal. The 10% federal early withdrawal tax penalty for distributions to participants under age 59½ does not apply to 457(b) withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
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.
The following mutual funds and the Fixed-Interest Option* are available in your retirement plan. They provide you with the flexibility you need to help create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
* Bear in mind that investing involves risk, including the possible loss of principal. Investment values 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 their original cost. Policy Form series GFUA- 315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.
RO 2767020 (03/2023)