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You are immediately eligible to participate in the plan and may begin contributing to the plan upon enrollment.

Certain classes of employees are not eligible to participate in this plan:

  • Non-resident aliens with no United States-earned income
  • A worker that the district did not treat as an employee but who is determined to be an employee by local state, government entity or court
  • Independent contractors
  • Seasonal employees
  • Temporary employees

All eligible employees can make contributions to the plan immediately.

You can join the plan as of the first day of any calendar month by entering into an agreement with respect to compensation not yet earned. New employees may become a participant on the first day of employment by entering into an agreement on or before the first day of employment with respect to compensation not yet earned.

Starting early has its advantages

Contributions

SECURE Act 2.0 of 2022 changed the timing of deferral elections for governmental 457(b) plans. You may now elect to defer a portion of your compensation any time prior to the date compensation becomes available. The maximum amount you are allowed to contribute to your 457(b) plan is based on your taxable compensation as defined by the Internal Revenue Code.

Generally, you can contribute up to 100% of your salary on a pretax basis, up to the maximum IRS contribution limit. Special catch-up provisions may also be available. Talk to your financial professional for more information.

2025 contribution limit

Your contribution limit for 2025 is $23,500.

If you have an existing deferred compensation plan account with a prior employer, you can transfer or rollover that account into the plan on becoming a participant in the plan. 

Catch-up contributions

You are eligible for catch-up contributions if you meet the following: 

2025 catch - up contributions

> An additional $3,000 if you have 15 more years of service and have undercontributed in prior years, and 

> An additional $7,500 if you are age 50 or older.

You may be able to contribute additional funds if you are within the last three taxable years ending the year before the year you attain normal retirement age as specified under the plan and have undercontributed in prior years.

Account consolidation

You might be able to transfer your vested retirement account balance from a prior employer’s plan to your Washington Hospital Deferred Compensation 457(b) plan with Corebridge. This may be a way to simplify your financial profile and to ensure your overall investments are suitably diversified and consistent with your investment preferences. However, before moving funds, check with your other provider to determine if your account has any restrictions, imposes a withdrawal penalty or provides favorable terms. If distributions from the prior plan are subject to the 10% federal early withdrawal tax penalty, they will continue to be subject to the penalty after the rollover (even if the penalty did not apply due to severance from employment at age 50 or 55).

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.

Pretax or Roth contributions

You have a choice regarding your elective contributions. 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 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.

Under a 457(b) plan, a deferral election start, change, or stop will become effective no sooner than the first pay period of the month following the date the election is made.

Fee disclosure information

Obtain specific fee disclosure and fund performance information by visiting corebridgefinancial.com/retire and clicking on “Fee Disclosure” at the bottom of the screen.

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.

Accessing your money before retirement

Withdrawal restrictions

Your plan was established to encourage long- term savings, so withdrawals prior to age 70½ are subject to federal restrictions. Unlike many other plan types, there is no 10% federal early withdrawal tax penalty for early withdrawals in the 457(b) plan except on amounts rolled over from other non-457(b) eligible retirement plans and withdrawn prior to age 59½.

Generally, depending on plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:

  • Retirement or severance from employment
  • Unforeseeable emergencies
  • Your death
  • Reaching age 70½ (if your plan allows in-service distributions)
  • 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). (If you reach the age requirement and have not separated from service, you can elect to defer receipt no later than April 1 of the year following separation from service.)
  • A one-time withdrawal is allowed if your account balance is $5,000 or less and there have been no deferrals for the past two years and no prior withdrawals of this type have been taken.

Income taxes are payable upon withdrawal. Federal restrictions may apply to taking withdrawals before age 70½. Be sure to talk with your tax advisor before withdrawing any money from your plan account.

In addition, 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.

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.

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 reimbursement received from mutual fund companies. Additionally, mutual fund annual operating expenses apply based on the funds chosen. Mutual fund expenses and fund reimbursements are described in the prospectus.

Plan distributions 

Subject to plan terms, the plan may allow you to elect to receive payment of your account balance on a fixed or determinable future date as long as you make the election prior to your account balance first being made available to you. In general, distributions may not be made from a 457(b) plan prior to reaching age 70½, severance from employment, or occurrence of an unforeseeable emergency.

Your plan account balance is includible in your gross income in the year that the account is first made available to you, even if the plan has not distributed your account balance.

If you do not make an initial election, the plan may provide for a default payment schedule. If you have made an initial election, the plan may allow you to make one additional election to delay distribution.

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.

Tax-free 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.

 

RO 3388947 (7/2024)