403(b) Middlesex Health Savings and Investment Plan Overview

Below are the important features about your 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, please contact your local representative.

Contributions

The contributions are made on a pre-tax basis. Contributions made from your wages "reduce" your salary by the amount of your contribution, and you are not taxed on those contributions or the earnings until the money is distributed. Contributions are invested according to your investment selection. Please note that distributions will be taxed as ordinary income when distributed and are subject to any applicable tax penalties.  The plan also allows for Roth 403(b) contributions. 

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.

Enrollment

To enroll in the plan, please contact your local Voya Representatives*, Keith Williams at (860) 580-2126 or Marty Baron at (860) 580-1606.

* Securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC)

If you are a Middlesex Health VNA employee, you are default enrolled in the plan at date of hire. Employees must select a contribution amount for deductions to begin. 

  • For employees hired before 01/01/1999 Middlesex Health will match 50% of applicable employee contributions up to 4% of included compensation.
  • For employees hired after 01/01/1999 Middlesex Health will match 100% of applicable employee contributions up to 4% of included compensation.

Middlesex Health employees are automatically enrolled in the plan at a rate of 4% of eligible salary. Middlesex Health Systems will match up to 50% of the first 4% of your contributions.

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.

Contract Exchanges

The Plan permits you to move existing Plan assets with prior investment providers to Voya®.

Consider your personal financial situation; compare your options for differences in cost, benefits, charges and other important features, before you exchange assets.

Rollovers

The Plan permits you to rollover amounts from a 401(a)/(k), 403(b) or governmental 457(b) plan or a traditional IRA.

Consider your personal financial situation; compare your options for differences in cost, benefits, charges and other important features, before you rollover assets.

Loans

Loans are available only if authorized by your employer.

In general, you may have only one outstanding loan at a time for a maximum duration of 60 months. However, you may also take an additional loan for a maximum duration of 240 months if that loan is used for the purchase of your primary residence.

In general, the maximum loan amount is the lesser of:

  1. $50,000 minus the excess of the highest outstanding balance of loans during the last one year period ending on the day before the loan is taken over the outstanding balance of loans on the date the loan is taken; or
  2. 50% of your vested account balance.

There is a $100 loan initiation fee.

Please note: loans will reduce your account balance, may impact your withdrawal value and limit participation in future growth potential. Other restrictions may apply.

Permitted Distributions

403(b) plans are intended to be long-term investment vehicles. In general, contributions made to the Plan may only be withdrawn due to:

  • Attainment of age 59½ (withdrawals prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax);
  • Severance from employment;
  • Your death or disability;
  • Financial hardship.

In addition, your Roth 403(b) Contributions may be distributed tax-free only if you have met a 5-year holding period requirements and the distribution is due to:

  • Attainment of age 59½
  • Disability
  • Death

It is important to note that the Roth 403(b) will have the same restrictions on pre-59½ withdrawals as does the traditional (pre-tax) 403(b).

A 403(b) plan may also include provisions allowing for additional access to funds in your account. Funds may be withdrawn by an alternate payee under a qualified domestic relations order once your account is divided in accordance with a court order.

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).

Payment Options at Separation from Service

  • Partial or Lump-sum Withdrawal
  • Systematic Withdrawal Option – Specified period or specified amount
  • Rollover to another eligible retirement plan
  • Combination of payout and annuity options
  • Annuity options

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.

Important Information
Mutual funds under a trust or custodial account agreement are intended to be long-term investments designed for retirement purposes. Account values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax-deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.