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Summary of Plan Provisions for Reliant 403(b)(9) Retirement Savings Plan

Entry Requirements
  • A minimum age is not required.

  • The service requirement is 90 days for Class 1, Career Employees. Class 2, Fixed-Term Employees are immediately eligible.

Pay/Compensation
  • Pay is total pay, including elective deferral contributions but excluding fringe benefits for the purpose of elective deferral contributions and matching contributions.
Elective Deferral Contributions
  • Plan members may defer after-tax Roth contributions. Roth elective deferral contributions and pre-tax elective deferral contributions are both counted in the maximum deferral limit. (Traditional vs. Roth Contributions)
  • The automatic elective deferral contribution is $50 for Class 1, Career Employees.

  • Plan members age 50 and older may defer catch-up contributions. Catch-up contributions are in excess of the deferral limit.
  • Deferall Limits: Annual Contribution Limits 403(b)(9) Plan
Elective Deferral Contribution
Changes
  • Stop elective deferral contributions on any date

  • Change elective deferral contributions on any date

  • Changes to Contributions
Employer Contributions
Vesting

For Qualified Employer Contributions

Plan Distributions
Financial Hardship Withdrawals
In-Service Withdrawals
Loans
  • Maximum amount of any loan is the lesser of

    1. 50% of the Member's Vested Account, reduced by any outstanding loan balance

    2. $50,000, reduced by the highest outstanding loan balance during the one-year period ending on the day before the loan is made.

  • Minimum amount of any loan is $1000.

  • Maximum number of outstanding loans is 1.

  • Maximum term of any loan is 5 years.



4 Comments

  1. Barb Seckler, what "All Other Employer Contributions" would we ever have, that wouldn't be fully vested right away? Do you know any examples of that?

    Vesting:

    For Qualified Matching Contributions

    • 100% vested immediately

    For All Other Employer Contributions

    • 1 year, 30%; 2 years, 60%; 3 years or more, 100%

  2. Mike Swann It's a random thing that happened once and we're trying to actually get that changed to immediately vested.  About (5?) years ago principal basically gave participants in the plan a little extra stock in principal.  We didn't pay anything for it.  It's not really an employer contribution but that's how it was labeled.  It had a different vesting schedule.  For example, I think I got like $17.  But, when I rebalanced (something that most people do about once a year) it was sold and invested in the types of investments I normally carry.  So, not many people would even have this anymore.  Make sense?

  3. Mike Swann It's possible we could do an end of year gift if we wanted and if we did that, we'd really want to make sure we get that provision changed because it would likely have that vesting schedule too.  But, like I mentioned, we actually are working with principal to remove that.  And we only do the monthly qualified matching anyways so everyone is always 100% vested with that.

  4. Thanks Barb Seckler, that makes sense