403(B) Plan Overview
Below are some of the important features about your employer's 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 this website and the plan document, the plan document provisions prevail. For more information, contact us.
A 403(b) Plan is a type of defined contribution plan available to employees of hospitals, public schools, and certain other tax-exempt organizations under Section 403(b) of the Internal Revenue Code. Through the 403(b), you can set aside a portion of your pay through salary reductions and invest those pretax dollars in one or more investment options.
In addition, Cedars-Sinai provides matching contributions, which are allocated on a quarterly basis. The matching contribution for eligible employees is 50% of salary deferrals under the 403(b) 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. For more information on the DC plan, please visit the DC Plan section of this website (link to DC subsite).
The 403(b) plan works like this:
- You decide how much to invest on a pretax basis for your retirement subject to annual maximum contribution limits as set by the IRS.
- Cedars-Sinai will take the amount you choose to deduct from each paycheck and forward it to Voya® on your behalf to be invested according to your choices from amongst the plan’s available investment options.
- The contributions and any earnings that accumulate over the years 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 59 ½ will be subject to an IRS 10% premature distribution penalty tax, unless an exception applies.
- Your employer's 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 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 Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here.
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, so we suggest you discuss your income tax liability with your accountant or attorney before choosing an option:
- Lump sum, or partial lump sum distribution in combination with other options Deferral of all or a portion of your benefits to a later date
- 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.
Withdrawals prior to age 59 ½ will be subject to an IRS 10% premature distribution penalty tax, unless an exception applies.
You should consider the investment objectives, risks, and charges and expenses of the mutual funds 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. 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)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. 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).
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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.