Banner Retirement Plans Information
Maximum Salary Deferral
The maximum employee salary deferral (contribution) for 2012 is the lesser of 100% of your annual pay or $17,000 in 2011.To calculate your maximum allowable percentage, divide $17,000 by your projected annual salary.
If you will be age 50 by Dec. 31, 2012, your 2012 limit is $22,500. To calculate your maximum allowable percentage, divide $22,500 by your projected annual salary.
The IRS has set a $250,000 limit on 401(k) and 403(b) eligible salary. In order to receive the maximum employer match (401(k) only), your contributions must run for all pay periods during the year. If you do not have a contribution during any pay period, no employer matching contribution will be made either. In 2012, there will be 26 pay periods.
Service Provider
Fidelity Investments is the provider of investment options, trustee, and recordkeeping services for the retirement plans. Fidelity is the nation's largest mutual fund company—managing the accounts of more than 16 million investors. A good portion of the more than $973 billion dollars managed by Fidelity is in retirement accounts.
Immediately Vested
Some companies require their employees earn the right to keep contributions the company has made to their retirement plan by working for the company for a certain number of years. This is called vesting. Banner has no vesting requirements. You are always 100% vested in your and Banner Health’s contributions to the Plan. In other words, you will always have ownership of the contributions you and Banner make to your Retirement Plan account.
Contribution Flexibility
You have the flexibility to change contribution amounts at any time. You also have the ability to make exchanges (change your investment choices) at any time. (There is a short-term trading fee of 1 percent for shares held in a particular account less than 30 days. Mutual funds available through the plan reserve the right to modify or withdraw the exchange privilege.)
Loans are Available
While the retirement plans should be considered a long-term investment, you will have the ability to request a loan. The minimum amount you can borrow is $1,000, and you can have two outstanding loans at a time. Generally, you may borrow the lesser of 50% of your balance or $50,000. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. Loan repayments (plus interest) to your plan account are paid back through electronic bank draft. No loan may be written for longer than five years.
In addition, you may take in-service withdrawals on any after-tax contribution account. These after-tax contributions continue to be recorded as after-tax contributions on your account statements while your 401(k) deferral amounts are recorded as pre-tax.
For more information about loans, please review the Loan Policy.
Accounts are Valued Daily
You are able to access up-to-date information about the value of your investments and make transactions on any business day, and every transaction is confirmed. Every three months, Fidelity will send you a detailed statement of your balance, account activity, and your personal rate of return.
Detailed information on this benefit such as eligibility, plan coverage, limitations and contact information can be found in the Summary Plan Description (SPD).
Important to Note
This page contains highlights of the retirement plans. The details of how these plans work are included in the legal documents and contracts that govern how the Plan operates. In the event of a difference between this page and the legal documents and contracts, the legal documents and contracts will apply. This page does not imply a contract of employment or guarantee of benefits. Banner Health reserves the right to change or discontinue all or part of the 401(k) Plan benefits at any time for any reason. Employees who have a status of Pay-In-Lieu, Registry or Traveling Nurse are not eligible for the 401(k) Plan, but are eligible for the Banner Health 403(b) Plan.
