403(b) Roth
Emory Clinic's 403(b) Roth allows you to save for retirement by contributing after-tax dollars. At the time of distribution (in retirement), the withdrawal of your contributions are tax free; however, the earnings on any contributions are taxed unless your account has been open at least five years and you have reached age 59½.
You have the option of directing 403(b) contributions to either the 403(b) Savings Plan or the 403(b) Roth, or some combination of the two plans that does not exceed that year’s contribution limits.
Eligibility
For Employees to Contribute
All EC members can immediately begin to contribute after-tax dollars to the 403(b) Savings Plan.
For Employer Contributions
All EC members who are at least 21 years of age, and have completed one year of service are eligible for Emory Clinic's Basic Contribution.
Contributions
You can make contributions to one or more of the following retirement vendors:
* Fidelity is the default vendor for Emory
Employee Contributions
You can contribute from 1% to 65% of compensation, subject to IRS maximum deferral limits. The IRS sets limits annually. The maximum deferral limit for 2024 is $23,000 per calendar year. If you are age 50 or over, you can make additional catch-up contributions (for 2024, the IRS limit is $7,500). Contributions up to 2% will be matched by Emory.
Employer Contributions
Emory Clinic’s Basic Contribution (6%):
Upon completion of one year of service, Emory Clinic provides a basic contribution of 6% of compensation on earnings up to the IRS annual compensation limit (for 2024, the limit is $345,000). Once you are eligible, Emory Clinic’s 6% contribution to your retirement will begin the first of the following month.
If you are employed by Emory Clinic and Emory University, the basic contribution from the employers (6% from the Clinic and 6% from the University) is capped at $26,000.
Emory Clinic’s Matching Contribution (1.5% to 3%):
The matching contribution will be effective at the same time your employer basic contribution begins as long as you are making the appropriate contribution. If you are not making a contribution, the Emory Clinic Match will begin after you have satisfied the eligibility requirement and your contributions start. Emory will match employee contributions as follows:
- Employee contributes 1% of regular salary — Emory matches with a 1.5% contribution.
- Employee contributes 2% of regular salary — Emory matches with a 3% contribution.
EXAMPLE
Below is an example of the total 403(b) contributions received for an eligible employee who contributes 2% to the 403(b):
- Employee Basic Contribution: 2%
- Employer Matching Contribution: 3%
- Employer Basic Contribution: 6%
How to Enroll
You can enroll in the 403(b) Roth at any time throughout the year. Read this user guide for detailed information and instructions.
Step 1: Enroll using Fidelity's NetBenefits website
Use NetBenefits to enroll, enter your contribution amounts, and select your vendors. You can also calculate your maximum allowed contribution using an online retirement modeling tool. View step-by-step instructions.
Step 2: Complete the online enrollment form for each vendor you selected
Contact the vendor(s) you selected directly to complete this step. You can do this either online or by phone:
If you do not select investments, you will be placed in the default Lifecycle Fund until you make your selections.
Types of Investment Choices
With several types of investment choices within Fidelity and TIAA's investment lineups, you can easily create an investment mix to help you meet your goals, investing style and needs.
These funds offer an all-in-one approach to simplify investing. The Vanguard Target Date Funds are designed for investors expecting to retire around the year indicated in each fund’s name. The funds are managed to gradually become more conservative over time as you get closer to retirement.
If you want to select from passive and active funds that are monitored by Emory, the plan offers a number of passively and actively managed funds for your asset allocation.
The funds have been selected for Emory by CAPTRUST, a leading investment consulting firm, with consideration of performance, fund management, fees and other important characteristics.
The investments include funds across several asset classes, such as domestic and international equities, as well as fixed and guaranteed income investments. It’s up to you to decide how much risk you want in your portfolio and how to allocate your assets among the funds. Each of the vendors offer tools and guidance to help you. As a rule, you should periodically evaluate your investments and retirement portfolio based on your goals, risk tolerance and time horizon.
- Passively Managed Index Funds: A passively managed fund, or index fund, strives to deliver the return of a specific market index, such as small blend stocks. The lineup offers passive funds across several major asset classes. These funds are offered at a relatively low cost.
- Actively Managed Funds: An actively managed fund strives to deliver returns that are better than the related market index, through active selection of stocks and other investments by a professional fund manager. The cost of actively managed funds may be higher than passively managed funds.
A self-directed brokerage account combines the convenience of your retirement plan with the additional flexibility of an individual brokerage account. It gives you a wide array of mutual fund investment choices beyond those in your plan’s lineup. Emory does not evaluate or monitor the investments available through a self-directed brokerage account. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon and risk tolerance.
For more information about Self-Directed Brokerage, read the following details from Emory's retirement vendors:
If you decide that a self-directed brokerage account is right for you, contact your retirement vendor for details on how to open a separate brokerage account within your current plan.
Resources
If you need help in selecting funds, refer to the Investment Performance Chart or visit your selected vendor(s) website for information on fund performance. The Investment Performance Chart is updated quarterly.
You can also schedule a Retirement Counseling Session with Fidelity Investments.
Fees
A flat fee will be deducted quarterly from your accounts to cover administrative costs. The fees are shown in the chart below:
| Vendor | Quarterly Fee |
|---|---|
| Fidelity Investments | $5.50 |
| TIAA | $9.75 |
Vesting
For new hires or contributions after January 1, 2007, vesting is as follows:
- Employee’s Contributions: Your contributions are always 100% vested.
- Emory Clinic’s Basic Contribution: Vest after completion of 3 years of service.
Prior to January 2007, employer contributions were on a 5-year vesting schedule.
Accessing Funds
If you need to take a distribution from your Plan while you are an Emory Clinic employee, there are several options available. An overview of these options is provided below. Refer to the Summary Plan Description for more complete details.
Enables you to withdraw your own contributions and any Emory Clinic funds which are vested to cover certain medical, educational, real estate or personal purchase items. Plan Loans are repayable through direct debit of your checking or savings account over the timeframe of the loan and do not require you to cease participating in the plan during the term of the loan. No penalties are incurred by participants accessing their money, unless, they default on the repayment of the loan in which case the remaining balance will be treated as a distribution subject to all IRS penalties and taxes. Please call the vendor directly to initiate your loan. Once all forms are completed/submitted to the plan vendor, this process typically takes ten (10) business days.
Enables you to withdraw your own contributions including earnings on those amounts which are vested to cover certain medical, educational, home purchase or repair items. Hardship withdrawals cannot be repaid; are subject to IRS penalties for early withdrawal; and are taxable to the participant. Hardships require proof and documentation. Once all forms are completed/submitted to the appropriate retirement plan vendor, this process typically takes seven (7) business days.
Available to employees who have reached 59 ½ years of age. Withdrawal requests do not have to meet certain reason requirements; and, are not subject to IRS penalties for early withdrawal; and, do not require you to cease participation in the plan. You are able to withdraw your own contributions as well as vested employer contributions to the plan. Withdrawals are taxable to the participant at the time they are received. Once all forms are completed/submitted to the plan vendor, this process typically takes seven (7) business days.