403(b) (pre-tax) and 403(b) Roth (after-tax) Voluntary Contribution Plan (not including WRAP Plan) • 2020 limits -$19,500, or $26,000 if age 50+. There are no maximum salary limits on participation in a 403(b) (pre-tax) or 403(b) Roth (after-tax). • 403(b) (pre-tax) and/or 403(b) Roth (after-tax) contributions are accumulative of annual maximum limits. This is an aggregate amount between the 403(b) pre-tax and the Roth (after-tax), as well as an aggregate of all employers. Contributions may consist of any election amount between the 403(b) (pre- tax) and/or 403(b) Roth (after-tax) up to the annual maximum. • The participant has the right to change or terminate elected contributions at any time for both 403(b) (pre-tax) and 403(b) Roth (after-tax). A Retirement Worksheet must be completed. • All 403(b) (pre-tax) and 403(b) Roth (after-tax) employee contributions must be employer aggregated, including employee contributions under the University of Cincinnati 403(b) plan. It is the responsibility of the employee to coordinate their contributions limits. • 403(b) (pre-tax) and/or 403(b) Roth (after-tax) contributions are to the same investment provider (Fidelity or TIAA) the participant has selected for their 401(a) Defined Contribution Plan contributions. • Employees are permitted to deposit in the UC Physicians 403(b) plan, distributions the employee has received from other plans and certain IRAs, provided such distributions are legally qualified to be rolled over into this Plan. Your rollover will be placed in a separate account called a “rollover account”. You will always be vested in your rollover account. • Beneficiary Designation: The employee must designate a beneficiary for the distribution of retirement account balances upon their death by contacting Fidelity or TIAA. Online beneficiary designation is available with TIAA. Any beneficiary may be selected with no spousal waiver required. If no beneficiary is selected the default for all plans is 100% spouse (if applicable) then 100% to estate. • Hardship withdrawals are allowed from the 403(b) (pre-tax) not the 403(b) Roth (after-tax). Loans are not allowed. UC Physicians processes Fidelity hardship withdrawals. TIAA processes hardship withdrawals. • The 403(b) Roth (after-tax) account is separate from the 401(a) or 403(b) (pre-tax) plan. Once an employee has elected a 403(b) Roth (after-tax) contribution they may change or terminate their contribution amount at any time. However, the contributions in their 403(b) Roth account cannot later be changed to 403(b) pre-tax contributions. The 403(b) Roth requires a 5-taxable-year period of participation. Upon distribution, earnings may be entirely tax free and penalty free if the 5-year participation is met and the participant has met age requirements 59½ or other “qualified purpose”. The 403(b) Roth is not subject to required minimum distributions. • 403(b) (pre-tax) and 403(b) Roth (after-tax) distributions are eligible at termination of employment or age 59 ½ or older. Current employees age 59½ or older are eligible to withdraws funds from their accounts while working for UC Physicians. If an employee elects an in-service distribution under the Plan, they may also elect to convert into a Roth contribution account all or a portion of such in-service distribution which consists of non-Roth funds. An employee is also eligible to withdraw a portion or all
Retirement 10
Revised 2/11/2020
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