403(b) plan
Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement 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 in the plan is open to all employees.
The plan does not allow participation by:
- Non-resident aliens with no U.S. earned income
- Students performing services
- Employees of an Affiliated Employer
- A worker that the Employer did not treat as an Employee, but who is determined to be an Employee by a local State or federal government entity or court
There is no age or service requirement for eligible employees to participate in the plan.
Your contributions (subject to plan terms)
Through payroll deduction, your plan allows you to make pre-tax contributions up to the maximum allowed by the Internal Revenue Code.
If you have an existing 403(b) tax-deferred arrangement account with a prior employer, you can transfer or roll over that account into the plan anytime (see Important message below).
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.
Employer contributions
The plan also provides for Washington Township Health Care District to make contributions for benefited employees.
Each year, the Employer shall establish, on or before the fifteenth day of the tenth calendar month following the close of the taxable year of the Employer with or within which the Plan Year ends, the amount to be contributed to this plan.
Catch-up contributions
You are eligible for catch-up contributions if you meet the following:
You may be able to contribute additional funds if you have 15 or more years of service and have under contributed in prior years, and/or are age 50 or older. If eligible for both catch-up contributions above, you must exhaust the 15-year catch-up first.
Roth account
You may also make after-tax contributions to a Roth Account in the plan by convenient payroll deduction. You have a choice regarding your elective contributions. You can direct all of your contributions to a traditional pre-tax 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 stop your contributions anytime. Once you discontinue contributions, you may only start again as provided under the terms of the plan.
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, and rollover contributions, plus any earnings they generate.
Accessing your money before retirement
Withdrawal restrictions
Money can be withdrawn from the plan in these events:
- Your attaining age 59½
- Death
- Disability
- Total and permanent disability
- Severance from employment
Income taxes are payable upon withdrawal. Federal restrictions and a 10% early withdrawal penalty may apply if taken before age 59½. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions.
A hardship may include:
- Purchase of a principal residence
- College tuition and approved related expenses for you, your spouse or dependents
- Non-reimbursable medical and/or dental expenses for you, your spouse or dependents
- Payment to prevent eviction from or foreclosure on your principal residence
- Payment for burial or funeral expenses for your deceased parent, spouse, or children
- Payment for expenses for the repair of your principal residence
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.
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.
Fixed-Interest Option transfer restrictions
A 20% annual withdrawal is allowed from the Fixed-Interest Option with no withdrawal charge. There are no transfer or withdrawal restrictions if one of the following conditions are met:
- Annuity payout option is selected
- Your death
- Total and permanent disability
- Withdrawal taken as a hardship under the terms of the employer plan
- Retirement or separation from service from the employer who sponsors your plan
- Elect to transfer a portion of the account value to a companion account for a loan
This restriction includes money transferred to mutual funds or to another provider.
* Policy Form GFA-504, a group fixed allocated annuity, issued by The Variable Annuity Life Insurance Company, Houston, Texas.
Administrative fee
The gross annual administrative fee assessed on mutual fund assets in the plan is 0.10%. This may be offset, in whole or in part, by reimbursements received from mutual fund companies. Additionally, mutual fund annual operating expenses apply based on the mutual fund chosen. Mutual fund expenses and fund reimbursements are described in the fund prospectus.
Also, the Service Provider agrees to share revenue in the event the amount of income received from one or more of the investment companies exceed the amount necessary to administer the plan. Any excess will be allocated to the participant account as soon as administratively practicable after the close of each calendar quarter, on a pro-rata basis, according to the value and allocation of their respective accounts at that time. See the “Revenue Sharing Policy”.
Tax-free loans
The plan is intended to help you put aside money for your retirement. However, Washington Township Healthcare District has included a plan feature that enables you to access money from the plan.
- The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of one-half of your vested account balance or $50,000.
- The minimum loan amount is $1000.
- All loans must generally be repaid within five years. Loans may be for a period of not less than 12 months.
- A $50.00 processing fee for all new loans and a $50.00 per year loan maintenance fee are charged to your account.
Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional.
An array of investment choices
The following funds are available in your retirement plan. They 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. You can change your investment choices anytime.
To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
RO 3388947 (7/2024)