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Retirement Savings

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Last updated date: 10/28/2024

The CHOC 403(b) Plan is the simple, rewarding way to save for your future.

Overview

CHOC helps you prepare for retirement with the easy-to-use, tax-advantaged CHOC 403(b) Plan.

Key advantages

CHOC contributions

CHOC contributes to your account to help your savings grow faster.

Different contribution tax advantages

You’ll pay less in income taxes when you make pre-tax contributions from your paycheck, but you will owe taxes when you withdraw from your account. You will pay taxes on Roth post-tax contributions before they are deducted from your paycheck, but you will not owe taxes when you withdraw from your account.

Tax-deferred investment growth

Pre-tax and Roth post-tax contributions let your money grow without being taxed.

Wide range of investment options

You choose how you want to invest your money.

Eligibility and enrollment

You are immediately eligible upon your date of hire. You may enroll or change your contribution rate and investment elections at any time by visiting the Empower website, calling 833-246-2403, or by downloading the app today.

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Enroll

Get started by visiting the Empower website to view plan details and access forms and documents.

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Plan

Log in to your Empower account to see your balance and use planning tools and calculators.

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Adjust

Easily change your contribution rate, investment selections, or beneficiary on the Empower website.

Your Contributions

You may contribute between 1% and 85% of your eligible pay to your plan account, up to annual IRS limits.

2024 contribution limits

  • $23,000 if you’re under age 50
  • $30,500 if you are age 50 or older this year (which includes an additional $7,500 in catch-up contributions)

If you'll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.

Pre-tax vs. Roth post-tax: What’s the difference?

The CHOC 403(b) Plan gives you the flexibility to save for retirement with pre-tax contributions, Roth post-tax contributions, or both.

  • With pre-tax contributions – the money goes into your account before taxes are deducted, so you keep more of your take-home pay
  • With Roth post-tax contributions – the money goes into your account after taxes are withheld, but both your contributions and any associated earnings can be withdrawn tax-free in retirement*

*In order for Roth earnings to be withdrawn tax-free, you must be at least 59½ (or the withdrawal follows death or total disability), and at least five years must have elapsed since your first Roth contribution.

Catch up!

If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.

Boost your retirement income with HSA savings

If you’re enrolled in the HDHP 2000 with a Health Savings Account (HSA), you can invest the money in your HSA to build long-term savings for retirement! An HSA is a tax-free way to save money and maximize how much of your 403(b) or other retirement accounts can be used to support your lifestyle.

CHOC Contributions

CHOC helps you reach your retirement goals faster by making valuable company contributions to your account:

  • 1–5 years of service: – 50% match on the first 4% of your base pay*
  • 6–9 years of service: – 100% match on the first 3% of your base pay*
  • 10+ years of service: – 200% match on the first 3% of your base pay*

*Eligible pay includes your base salary, not including any bonus or commissions.

If you have been rehired by CHOC, you must meet again one year of service and 1,000 hours worked before matching contributions begin. However, your prior years of service with CHOC will be counted toward achieving the levels in the above schedule.

Name a Beneficiary

It’s important to designate a beneficiary to receive the value of your CHOC 403(b) Plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit the Empower website to add or change your beneficiary.

Withdrawals and Loans

The money in your account is a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit the Empower website or call 833-246-2403.

Think before you act

  • If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your future. Taking money from your account now may lead to a smaller savings balance when you retire
  • Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it harder to get back on track
  • If you take a loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account
  • If you withdraw pre-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left CHOC)
  • If you plan to take a leave of absence and are currently paying off a loan, contact the Benefits Department at benefits@choc.org for stopping and also restarting your loan upon returning from your leave

Financial Counseling

Take an active role in your retirement planning with these helpful tools and resources.

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Empower education consultant

Reach out to our Empower consultant, Brian Hand, for help navigating the Empower website and app. Learn how to use online retirement plan tools, make contribution rate or allocation revisions, and more. To schedule an appointment, visit https://choc.empowermytime.com

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Professional guidance

Consult with our professional financial advisor, Joel Shomaker, and receive guidance to help you achieve your financial goals by scheduling an appointment at https://calendly.com/jshomaker/choc-retirement-planning-meeting

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Financial wellness website

Learn about budgeting, debt management, financial wellness, and more! You can also receive a customized online assessment tailored to your unique situation. Call 877-742-2022 or visit https://www.onedigital.com/solutions/financial-services/personal-financial-planning/ to get started.

Tools & Resources

Online tools

Empower offers a variety of resources to help you maximize your retirement savings.