403(b) Retirement Plan Overview
Submitted by Matthew Wetmore on
Below are some of the important features of the Cedars-Sinai 403(b) Retirement Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within and the plan document, the plan document provisions prevail. For more information, contact us.
The Cedars-Sinai 403(b) Retirement Plan is a type of defined contribution plan available to Cedars-Sinai Health System employees under Section 403(b) of the Internal Revenue Code. Through the Cedars-Sinai 403(b) Retirement Plan, you can set aside a portion of your pay through salary reductions and invest those pre-tax dollars in one or more investment options. Cedars-Sinai will also provide matching contributions to your account, which are allocated on a quarterly basis. The matching contribution for eligible employees is 50% of salary deferrals to 403(b) Retirement Plan, up to 6% of compensation.
The 403(b) Plan is just one retirement plan available to you as an employee of Cedars-Sinai. In addition, Cedars-Sinai provides a choice of a Defined Benefit (DB) or Defined Contribution (DC) Plan. Learn more about the DC Plan.
The Cedars-Sinai 403(b) Retirement Plan works like this.
- You decide how much to invest on a pre-tax basis for your retirement, subject to annual maximum contribution limits set by the IRS.
- Cedars-Sinai will take the amount you choose to deduct from each paycheck and forward it to Voya Financial® on your behalf to be invested according to your choices from the Plan’s investment options.
- The contributions and earnings, if any, that accumulate in your 403(b) account are not taxed until you receive them. That's usually at retirement when you may be in a lower tax bracket. Withdrawals prior to age 59½ will be subject to an IRS 10% premature distribution penalty tax unless an exception applies.
- Your Cedars-Sinai 403(b) Retirement Plan has no effect on Social Security. Your Social Security contributions and benefits will be based on your total pay, including the amounts paid into the 403(b) Retirement Plan.
Contributions under the Plan are made by participants through a reduction in salary. Under the Plan, the maximum annual contribution amount is set by IRS guidelines on a yearly basis. View the annual contribution limits..
When you're entitled to receive a distribution under the Plan, you can receive your benefits in any one of the following ways subject to the terms of the Plan. Remember, taxes are due at withdrawal. We suggest you discuss your income tax liability with your accountant or attorney before choosing an option:
- Deferral of all or a portion of your benefits to a later date
- Lump sum, or partial lump sum distribution in combination with other options
- Distribution over your lifetime and the lifetime of your designated beneficiary
- Distribution over a set period not extending beyond your life expectancy
- Distribution over a set period of time not extending beyond the joint and last survivor life expectancy of both you and your designated beneficiary
- Systematic withdrawal of your account over a specified period or of a specified amount
- Distribution over your lifetime
Please contact our local representatives at (310) 423-0974 to receive more information on these options or others that may be available.
You should consider the investment objectives, risks, and charges and expenses of the investment options offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Mutual funds under a custodial or trust account agreement are intended as long-term investments designed for retirement purposes. Early withdrawals taken prior to age 59½ from a 403(b) plan will be subject to an IRS 10% premature distribution penalty tax, unless an exception applies. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. The Cedars-Sinai Stable Value Option is invested in Voya’s Stabilizer Product which is Voya’s service mark for the series of guaranteed separate account products marketed to tax deferred annuity programs. Voya StabilizerSM is offered under a group annuity contract. An annuity does not provide any additional tax deferral benefit; tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject.
For 403(b)(7) custodial accounts, employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and '88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).
Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners LLC (member SIPC). Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. All companies are members of the Voya® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Products and services may not be available in all states.