Below are the important features about the 403(b) Defined Contribution Plan (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.
View the 403(b) Summary Plan Document
You decide, within certain legal limits, how much of your income you want to defer.
- Marymount University (your employer) reduces your paycheck by an amount specified by you and forwards it to Voya Financial® on a regular basis.
- Contributions are invested in the investment options you have selected.
- You have the option of contributing before-tax and Roth after-tax contributions to the Plan.
Eligibility
All full-time Marymount University employees, excluding non-resident aliens and student employees, are eligible to immediately participate in the Plan.
Auto-enrollment into the 403(b) Plan
Newly eligible employees will receive a notice from Voya confirming Plan eligibility. If you receive the notice from Voya, there is a 30-day period from the notice date to enroll in the Plan and select a contribution rate and desired investment elections. This can be done through an online enrollment process using the instructions provided with the notice. You can also access the online enrollment process here. If no action is taken during the 30-day opt out period, a pre-tax contribution of 2% will automatically be deducted from your pay and applied to the 403(b) account on an ongoing basis. The contributions will be invested in the appropriate target date mutual fund based on your date of birth. If you choose not to participate in the Plan at this time, you can decline enrollment through the online enrollment process. You will still be eligible to enroll whenever you are ready to start.
Employee contributions
Your contributions are invested in your choice of any combination of the investment options available through the Plan (see Investment Options for a complete list).
Under the Plan, the maximum annual contribution amount is set by IRS guidelines on a yearly basis. You may view the current limits here.
Roth after-tax contributions are available. To learn more about Roth contributions and if they’re appropriate for your retirement saving strategy, visit the Guide to contribution options in employer retirement plans.
Employer contributions
The University may contribute an employer discretionary match of 100% up to 6% of your compensation. The University may also make an employer non-elective contribution. A vesting schedule applies to these employer contributions and earnings and will be based upon your initial hire date. “Vesting” means ownership. Regarding the 403(b) Plan, an employee who is 100% vested owns 100% of the employer contributions and earnings; the University cannot forfeit, or take back, for any reason.
- 1 year of service – 25% vested
- 2 years of service – 50% vested
- 3 years of service – 75% vested
- 4+ years of service – 100% vested
Please note: an employee is immediately 100% vested in employee contributions and earnings.
Loans
- Only active employees of the University are permitted to borrow from their Plan account.
- There are two types of loans available; general purpose and residential (used to acquire, construct, reconstruct or substantially rehabilitate the principal residence of the participant or family member).
- Participants may only have one loan outstanding under the Plan at any time.
- Minimum loan amount for general purpose loans is $1,000, and for residential loans is $1,000.
- The maximum loan amount is the lesser of: 1) $50,000 or 2) 50% of your vested account balance.
- Loan repayments (principal and interest) are made by an ACH debit once a month from your checking or savings account. You must provide the necessary bank deduction information to Voya as part of process of requesting a loan. The maximum loan repayment period is five (5) years for general purpose loans and twenty (20) years for residential loans.
- A one-time set up fee of $75 applies to each loan taken.
- An annual loan administration fee of $25 applies to each outstanding loan.
- Loans may impact your withdrawal value and limit participation in future growth potential.
- Upon separation from service, the loan must be repaid in full to avoid default.
- Click Here for instructions on how to request a loan online.
To request a loan, please call the customer contact service center at (800) 584-6001 for a Loan Request package. Review, complete and sign the loan documents. The documents can be faxed or mailed back to Voya for processing.
Withdrawal Charges
None
Permitted Distributions
You are permitted to take a distribution if you are no longer working for the University.
If you are still employed by the University, certain distributions are permissible: attainment of age 59 ½, disability, Qualified Reservist Distribution (from employee contributions only), hardship withdrawals (from employee contributions only), rollover contributions and required minimum distributions.
Payment Options
When you are eligible to receive a distribution under the Plan, you have a variety of payout options. These payout options include:
- Systematic withdrawal of your account
- Annuity options
- Deferral of all or a portion of your benefits to a later date
The latest date to which you can defer payments is the April 1 of the year following the year you reach age 72, or April 1 of the year following the year you retire, whichever is later. - Lump sum or partial lump sum distribution in combination with other options
Take all or a portion of your account balance in cash. - Rollover into Another Eligible Plan
Your distribution can be rolled over into a 401(a), 401(k), 403(b), other governmental 457 plan, or a traditional IRA, if available and roll-overs are permitted. - All distributions are eligible for rollover except for:
A hardship withdrawal; IRS minimum required distributions payable on or after you attain age 72; and periodic payments made over your life or a specified period of 10 years or more.
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.