• Roth Contributions: 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. • 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 70 ½ 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) Wrap Plan • This plan was established to define the relationship of the 403(b) plans originally established under the individual practice corporations, prior to all practices becoming UC Physicians in 2009. Current UC Physician employees are not considered terminated from their previous employment under their practice corporation. • Employee 403(b) plan contributions under their practice corporation may be rolled over to the UC Physicians 403(b) Plan with only Fidelity or TIAA. They may not rollover their 403(b) plan to an IRA. Again, they are not terminated from employment from their practice corporation. The practice corporations are part of the UC Physicians organization.
457(b) Voluntary Pretax Contribution Plan • Contribution Limits: For calendar year 2021, $19,500, or $26,000 if age 50+.
• Election Changes: The employee has the right to terminate or change 457(b) contributions at any time. • Maximum Contribution: The sum of all 457(b) contributions, across all employers in a calendar year, including the University of Cincinnati and any other employers, may not exceed the IRS annual limit. It
Revised 1/15/2021
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