The Salvation Army Southern Territory Employee 403(b) Savings Plan Details

Accessing your money before retirement

403(b) withdrawal restrictions

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.

You must begin taking distributions once you reach age 73 (age 72 if you were born after June 30, 1949 and before January 1, 1951 & age 70½ if you were born before July 1, 1949) or you retire, whichever is later.

According to your plan’s provisions, you may withdraw your elective deferrals if you meet one of the following requirements:

• Reaching age 59½
• Retirement or severance from employment
• Your death or total disability 

The following are some events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:

• Reaching age 59½
• Severance from employment on or after age 55
• Your death or total disability
• Taking substantially equal payments for a period of five years or upon reaching age 59½, whichever is later Bear in mind that income taxes are payable upon withdrawal.

Distribution options

Your withdrawal options include:

• Electing systematic or partial withdrawals
• Taking a lump-sum distribution
• Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts transfers of rollovers
• Deferring distributions until the later of age 73 (age 72 if you were born after June 30, 1949 and before January 1, 1951 & age 70 ½ if you were born before July 1, 1949) or severance of employment, and allowing your account to continue to grow on a tax-deferred basis

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 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Generally, a qualified Roth distribution is a distribution that (1) is withdrawn after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) is after reaching age 59½, death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.

Consult your financial professional for more specific information.

An array of investment choices

Performance

You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under The Salvation Army Southern Territory 403(b) Savings Plan. 

The wide array of mutual fund investment options available in your 403(b) retirement plan will 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.

• View the entire list of funds and performance available in your 403(b) retirement plan.
  

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.

Default investment is an Age-Based Target Date fund.

Administrative fee

The annual administrative fee assessed on mutual fund assets in the plan is $2.00 per month per participant per year; additional plan expenses are paid by The Army. The mutual fund fees may be offset, in whole or in part, by reimbursements received from mutual fund companies. Mutual fund annual operating expenses apply based on the funds chosen. Mutual fund expenses and fund reimbursements are described in the prospectus.