Welcome to the 403(b) Savings Plan section of My Life at Children’s. In this section you will find all the information you need about this convenient saving option. Select an option from the menu at the left for more details.
403(b) Savings Plan
Retirement is a long-range goal that requires commitment and planning. Children’s encourages you to take a closer look at your retirement strategy and to maximize the opportunities available to you through the 403(b) Employee Savings Plan (Savings Plan). The information below is a general summary of the 403(b) Savings Plan. See the 403(b) Savings Plan documents under Resources at the left for more details.
How the Plan Works
The Savings Plan, administered by Fidelity, allows you to save for the future through the convenience of payroll deductions and helps you add to your savings with the aid of Children’s matching contributions. With the Savings Plan, you:
- Save automatically. Payroll deduction helps you save before you spend. After 30 days of employment, you are automatically enrolled at a before-tax contribution of 4% of your eligible compensation.
- If you do not wish to participate, contact Fidelity within 30 days of employment to cease the automatic participation.
- You can contribute from 1% to 100% of your eligible pay on a pre-tax basis (up to the annual dollar maximum set by the IRS) and up to 6% in after-tax contributions. The annual dollar maximum set by the IRS for 2012 is $17,000.
- If you are age 50 or older and are contributing to the maximum plan or IRS limit, you may be eligible to contribute an extra amount in catch-up contributions. The catch-up contributions limit for 2012 is $5,500.
- Save more, pay less. When you make pre-tax contributions, every dollar you contribute reduces your taxable income.
- Enjoy flexibility. You can change your contribution, or even stop or start contributing, at any time.
- Choose from many investment options. You decide how to invest your money among a variety of investment funds. If you do not choose, your contributions are automatically invested in the appropriate Fidelity Freedom Fund, based on your target retirement date.
- Vesting and availability. You are always vested (or own) the funds in your 403(b) account. Since the purpose of the 403(b) Savings Plan is to save for the future, these funds are generally not available until you leave employment with Children’s. There are provisions for loans from your funds.