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Valic 403 B Salary Reduction Agreement

A participant who obtains a loan under the plan must enter into a debit contract for the automated clearing house (“ACH”) to repay the loan to the member`s personal bank or savings account. You must start distribution if you are 72 years old (701.2 years old if you were born before July 1, 1949) or if you withdraw from the employer sponsoring the plan, depending on what happens later. To the extent that the applicable investment option allows, you can choose to receive a payment of all or part of the amount held in your rollover account at any time. Keep in mind that income tax is due at the time of payment and that withdrawals from your account 403 (b) before the age of 591.2 years are subject to federal restrictions and a 10% tax fine. Expenses directly related to the purchase of your principal residence Employees who are students and regularly take courses with the employer during the calendar year are excluded. You can increase or reduce the amount you contribute to the plan as often as your employer allows. Please note that some member institutions allow contributions to their plans 403 (b) on the basis of the upstream tax, on the basis of Roth after tax or a combination of the two. For more information, please contact your employer. You have the right to make a pre-tax contribution up to the IRS maximum contribution limit. All employees are immediately allowed to participate in Plan 403 (b).

There are no age or service requirements. Medical expenses for you, your spouse or your dependent You are immediately in your own contributions, the rolling contributions and the income they generate. If you meet the following condition, you may be able to contribute an additional catch-up amount. All loans must normally be repaid within five years. A longer term may be available if the loan is to be used to purchase your main residence. In general, you can withdraw your account balance if any of these events are done: a $50.00 processing fee for all new credits and a maintenance fee of $25.00 per year will be charged to your account. They can face two loans at the same time: a general loan and a mortgage. You pay interest on your account. The interest rate on your loan is set at 1% above the premium rate. Funeral expenses for your deceased parent, spouse, child or dependent Education, fees, room and meals, for post-secondary education for the next 12 months for you, your spouse, your children or your dependants If you have immediate financial needs caused by serious difficulties and you do not have other resources to meet these needs , you can benefit from a deduction allowance for your voluntary contributions.

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