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401(k) Plan
You can join the plan right away
Upon employment with Banner, you can start contributing anytime after receiving your first paycheck. There is no annual enrollment period- you may enroll 365 days of each year.
Who is eligible
All full-time, part-time, per-diem, pool and on-call employees are eligible to participate in the 401(k) Plan. Employees who have a status of Pay-In-Lieu, Registry or Traveling Nurse are not eligible for this Plan, but are eligible for the Banner Health 403(b) Plan. See the menu item on the purple banner above.
The current SPD is being finalized and will be available upon completion. Please contact Fidelity Investments for information current information on this plan.
For a copy of the Summary Plan Description, please click this link 401(k) SPD
401(k) Roth component
The Banner 401(k) plan gives you the option to contribute to the Roth component of our 401(k) Plan. While the regular 401(k) deferral uses pre-tax dollars, the new Roth 401(k) option lets you contribute after-tax dollars and then withdraw tax-free dollars from your account when you retire. These tax-free withdrawals also include all of the gains on your after-tax contributions.
In order to receive Banner's matching contributions, you must put the first 4% of your retirement contributions in the regular 401(k) using pre-tax dollars. Any contributions above that 4%, can be directed to either the regular 401(k) using pre-tax dollars, the new Roth 401(k) using after-tax dollars, or some combination of the two (up to IRS annual limits listed below)
You can view a side-by-side chart of how the two components can work together to provide you a balanced retirement fund of both pre-tax and after-tax savings.
Banner Health will match your contributions
Banner will match every dollar you put into the Plan, up to 4% of your annual pay, which includes overtime, shift differential, and on-call pay, after your first anniversary of employment. To receive the matching employer dollars, you must be contributing to the plan.
The maximum employee salary deferral (contribution) is the lesser of 100% of your annual pay or $15,500 in 2008.
To calculate your maximum allowable percentage, divide $15,500 by your projected annual salary. If you will be age 50 by 12/31/08, your 2008 limit is $20,500. To calculate your maximum allowable percentage, divide $20,500 by your projected annual salary.
The IRS has set a $230,000 limit on 401(k) eligible salary. In order to receive the maximum employer match, 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 2008, there will be 26 pay periods.
You will be vested immediately
Some companies require that employees earn the right to keep contributions that the company makes 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 contributions to the plan. You will be 100% vested in the matching contributions that Banner makes to your account after one year of employment. In other words, you will always have ownership of the contributions you and Banner make to your 401(k) plan account.
Your service provider
Fidelity Investments is the provider of investment options, trustee, and recordkeeping services for the 401(k) plan. 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.
You have flexibility to make changes
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 401(k) plan 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 pretax.
For more information about 401(k) loans, please review the loan policy. Your account is valued daily
Your account is priced each business day. You are able to access up-to-date information about the value of your investments on any business day. You are able to make transactions 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.
Important to note
This page contains highlights of the 401(k)/Roth 401(k). 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 medical plan benefits at any time for any reason.
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