has met age requirements 59½ or other “qualified purpose”. The 403(b) Roth is not subject to required minimum distributions. • 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 withdraw 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 rollover contributions during employment. 403(b) (pre-tax) accounts are subject to minimum distribution requirements at age 72 or at retirement, if later. • Early Withdrawal Penalty: If a participant does not meet the distribution requirements for 403(b) (pre- tax) and 403(b) Roth (after-tax) accounts, they may be subject to the 10% penalty. • Default Fund Selection: In the event no investment funds are selected for the 403(b) (pre-tax) and/or 403(b) Roth (after-tax), the default is a Fidelity Freedom Fund or TIAA Lifecycle Fund. The fund chosen will be based on the employee’s age with an expected retirement date at age 65. • Minimum Balance Provision at Termination: Upon termination of employment, if a participant’s account balance (excluding rollovers) is $1,000 or less, an automatic distribution will occur during the first quarter of the calendar year following the year of termination. 403(b) After-Tax Voluntary Contribution Plan with Roth In-Plan Conversion • Contribution Limits: For calendar year 2022, $61,000, or $67,500 if age 50+, less any amounts contributed to the 403(b) pre-tax or 403(b) Roth (after-tax). There are no maximum salary limits on participation in the 403(b) After-Tax. • Maximum Contribution: The sum of all 403(b) pre-tax, 403(b) Roth (after-tax), and 403(b) After-Tax contributions, across all employers in a calendar year, including the University of Cincinnati and any other employers, may not exceed the IRS annual limits listed above. It is the responsibility of the employee to coordinate their contribution limits among all employers in a calendar year. • Election Changes: The participant has the right to change or terminate elected contributions at any time for the 403(b) After-Tax. Participant must follow the administrative procedures established by the employer at the time to change elections. • Investment Provider: 403(b) After-Tax contributions are to Fidelity only. Quarterly administrative fees will apply and are subject to change. • Roth In-Plan Conversion: Employees may elect to convert 403(b) After-Tax contributions to Roth source. Fidelity allows employees to make a one-time recurring election to convert 403(b) After-Tax contributions to Roth source and the election remains in effect until revoked by the employee.
• Direct Employee Contributions: Rollovers from other plans are not permitted into the After-Tax Source.
• Vesting: Employees are 100% vested in all contributions.
• Beneficiary Designation: The employee must designate a beneficiary for the distribution of retirement account balances upon their death by contacting Fidelity. Online beneficiary designation is available. Any beneficiary may
Revised 09/23/2022
Made with FlippingBook - Online Brochure Maker