403b Enrollment Kit
Content
Duke 403(b) Retirement Plans Enrollment Kit Savings for Retirement Plan Faculty and Staff Retirement Plan
BenefitsPLUS
Your Choices at Duke
Use this Enrollment Kit to sign up for your 403(b) plan today
This Enrollment Kit provides you with important information and materials to enroll in the Duke University & Health System 403(b) Plans (Savings for Retirement Plan and Faculty and Staff Retirement Plan). Duke offers The Savings for Retirement Plan for eligible employees who are paid on the biweekly payroll or are a faculty or exempt staff member scheduled to work fewer than 1,000 hours per year. Students and temporary or casual labor employees who normally work fewer than 20 hours per week are not eligible to participate. The program is funded by your contributions. You make contributions through payroll deduction. Duke offers the Faculty and Staff Retirement Plan for eligible faculty and staff members. You are eligible to participate in the Faculty and Staff Retirement Plan if you are paid on the monthly payroll and are scheduled for at least 1,000 hours per year. House Staff, post-doctoral, intern positions, and students are not eligible to participate. The program is funded by both your and Duke’s contributions. You may make contributions through payroll deduction, and Duke will make a contribution if you contribute at least 3% and are at least age 21 and have completed one year of service. (Please see Duke’s Contribution on page 4.) Please refer to the Savings for Retirement Plan Summary Plan Description or the Faculty and Staff Retirement Plan Summary Plan Description for detailed information. The term “Duke” is used throughout this document. For purposes of this Enrollment Kit, “Duke” refers to the University, Duke University Health System, Inc., and any other entity which is or becomes controlled by Duke University and where, upon appropriate action by the Board of Trustees, the employees of that entity are included in the membership of this plan. Duke also offers the Employees’ Retirement Plan (ERP) for those employees paid on the biweekly payroll. Please refer to the summary plan description on the Employees’ Retirement Plan for more details.
1
Table of Contents
Your Retirement Plans at Duke . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
403(b) Retirement Plan Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Understanding the Duke 403(b) Retirement Plan . . . . . . . . . . . . . .3
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Enrolling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Contribution Minimums and Maximums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Rollovers to the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Duke’s Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Making Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Changing Contribution Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Changing Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Transferring Between Investment Carriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Withdrawals Before Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 When You Leave Duke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Frequently Asked Questions and Answers . . . . . . . . . . . . . . . . . . . .5 Employee Contribution/Change Form Instructions . . . . . . . . . . . . .6 Mutual Fund Classes and Market Indices . . . . . . . . . . . . . . . . . . . .7 Retirement Manager Instructions . . . . . . . . . . . . . . . . . . . . . . . . . .10 Helpful Telephone Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Instructions for Investment Carrier Applications . . . . . . . . . . . . . .13
Special Instructions for TIAA-CREF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Your Retirement Plans at Duke
Many financial experts estimate that you will need 70% to 90% of your final working income in retirement. It is not likely that any one retirement benefit plan will replace this much of your income. However, the three sources below can work together to help you retire comfortably. 1. Social Security — A program administered by the federal government. You and Duke contribute equally through payroll taxes. 2. Duke’s Contribution to your retirement • Employees ’ Retirement Plan — A pension plan funded entirely by Duke for employees paid biweekly. Employees who work at least 1,000 hours in the first year of employment or a future fiscal year and are 21 years of age or older automatically become members of the Employees’ Retirement Plan (ERP). This plan is called a defined benefit plan, which means that the benefit received from the plan is based on a formula. For more information on this plan, please refer to the Employees’ Retirement Plan Summary Plan Description which will be mailed to you when you become a plan member or log on to the web site at: www.hr.duke.edu/benefits . • Faculty and Staff Retirement Plan — Duke contributes to your retirement through this 403(b) plan. The Duke contribution is conditional upon your participation and is based on your salary. If your immediate previous employer was
2
hospitals, medical research organizations, some publicly supported/community organizations) or a state educational organization and were receiving employer contributions under a Code Section 403(b), 401(k), or 401(a) retirement plan maintained by the prior organization, you may participate and Duke’s contributions may commence upon your employment. You must provide proof of participation with your previous employer’s plan when you enroll in Duke’s plan. Proof of participation should be on your former institution’s letterhead and include: termination date, verification of status as a 501(c)(3) or state educational organization, and that the employer contributed to your retirement plan. 3. Your Contributions • Savings for Retirement Plan — You voluntarily contribute to your retirement through this 403(b) plan. • Faculty and Staff Retirement Plan — You voluntarily contribute to your retirement through this 403(b) plan. In general, you must contribute at least 3% to get the Duke contribution and have at least one year of service. Exceptions are made if you are between the ages of 21-35 or if your immediate past employer was a non-profit or a state educational organization.
403(b) Retirement Plan Checklist
Use this checklist to help you enroll in one of the Duke University 403(b) Retirement Plans.
an organization described in Section 501(c)(3) of the Internal Revenue Code (the Code) (examples: churches, schools, colleges/universities,
Read this Enrollment Kit for important information. Choose your investment carrier(s) and make your investment fund selection(s). Included
in this kit is a listing of the mutual fund classes offered. If you would like a complete list of all the funds, please visit www.hr.duke.edu/benefits/retirement/ vps.html and click on the “Investment Performance Summary” or call the Human Resource Information Center (HRIC) at (919) 684-5600. Complete the appropriate investment carrier application(s), included in this kit. To enroll on-line, log on to Retirement Manager at www.hr.duke.edu/benefits/ retirementmanager (see Retirement Manager Instructions on page 10). To enroll using paper, for monthly paid employees, complete the “Monthly Employee Contribution/Change Form,” and for biweekly paid employees, complete the “Biweekly Employee Contribution/Change Form,” included in this kit, to indicate the percentage or dollar amount per pay period and the allocation to each of the investment carriers you have selected. Mail the investment carrier application(s) to Duke Benefits. Please refer to page 12 for addresses.
invest (which investment carriers and which funds) and how much to invest. Your contributions can only be made through payroll deduction.
3
Eligibility
You are eligible to participate and begin making your contributions upon commencement of your employment with Duke.
Enrolling
In order to sign up for one of the Duke University Retirement Plans, you must know how much you would like to contribute and where you would like your contributions invested (investment carriers and funds). You can enroll online by accessing the Retirement Manager web site at www.hr.duke.edu/ retirementmanager (see Retirement Manager Instructions on page 10). To enroll using paper, for employees paid monthly, complete the “Monthly Employee Contribution/Change Form,” and for employees paid biweekly, complete the “Biweekly Employee Contribution/Change Form,” included in this enrollment kit, to indicate the percentage or dollar amount per pay period and the allocation to each of the investment carriers you have selected.
Understanding the Duke 403(b) Retirement Plans
The Duke University Retirement Plans are 403(b) plans, which are tax-deferred retirement savings plans. Any contributions that you make to this plan are on a tax-deferred basis. The Internal Revenue Service (IRS) taxes your contributions and the interest earned on your contributions when you withdraw them at retirement. You choose where to
Contribution Minimums and Maximums
The minimum contribution allowed by the plan is $12.50 per pay period if you are paid biweekly and $25.00 per pay period if you are paid monthly. The maximum contribution allowed by the IRS is $14,000 in 2005 and will increase by $1,000 each year until it reaches $15,000 in 2006.
Special Provisions
current plan year at www.hr.duke.edu/benefits. Under procedures adopted by Duke, Duke’s contributions will only be made for those months during which you make the minimum contribution of 3% (1% or 2% for those between 21 and 35). For information regarding the amount of Duke’s contribution for prior plan years, contact the HRIC. Note that if your salary-reduction agreement or after-tax contribution agreement is terminated or changed to a percentage below the minimum contribution of 3% (1% or 2% for those between 21 and 35), Duke’s contributions will cease as of the effective date of such termination or change.
• If you are over age 50 and contributing the $14,000 maximum, the IRS allows you to contribute another $4,000 in 2005. That amount will increase by $1,000 each year through 2006. • If you have more than 15 years of service at Duke and you have contributed less than $5,000 times your years of service to the 403(b) plan in previous years, you may be eligible to increase your annual contribution. Please contact the HRIC to find out if you are eligible for this provision.
Rollovers to the Plan
403(b), 403(a), 401(k), 401(a), governmental 457, and IRA assets are all interchangeable. This means they can all be rolled from one plan to another provided your employer allows rollovers from different retirement sources. Contact your investment carriers for more details if you are interested in rolling over funds into one of the Duke University 403(b) Retirement Plans.
Making Changes
Changing Contribution Amounts
You may change the amount you are contributing once per pay period. You can visit our web site at: www.hr.duke.edu/benefits/retirementmanager to change your contribution. See Retirement Manager instructions included on page 10. This change must be received by the Benefits Office 30 days before you receive your paycheck. This change can be done using the Retirement Manager or by completing the Employee Contribution Change Form and investment carrier applications found in this enrollment kit.
Vesting
Duke 403(b) Retirement Plans
All of your contributions and all of Duke’s contributions made to your 403(b) accounts are immediately 100% vested. This means you have a right to these contributions when you separate from service.
Changing Funds
You may change the funds in which you are invested as often as you like by contacting the investment carriers directly (use the telephone numbers or web addresses listed on page 12). For example, if you want to change from Fidelity Contra Fund to Fidelity Freedom Income Fund — call the Fidelity telephone number or log on to their web site. You may add investment carriers or redirect future contributions to different investment
Faculty and Staff Retirement Plan — Duke’s Contribution
Duke’s contribution is determined each
4
year and published prior to the beginning of the plan year (January 1 to December 31). You can obtain the University Contribution for the
carriers by logging on to Duke’s web site at www.hr.duke.edu/benefits/retirementmanager.
When You Leave Duke
Your contribution:
5
Transferring Between Investment Carriers
You may transfer your funds between investment carriers by contacting the investment carriers receiving the funds directly. For example, if you are transferring from Fidelity to Vanguard, contact Vanguard. They will send you appropriate paperwork and instructions.
• Can remain in the Duke plan until retirement, • Can be rolled over into an IRA, 401(a), 401(k), 403(a), 403(b), or governmental 457 plan if your new employer allows, or • Can be withdrawn as cash (IRS penalties may apply if you are younger than age 59 12). ⁄
Withdrawals Before Retirement
• If you are still employed at Duke and younger than age 59 12, you may only take employee ⁄ contributions through a hardship withdrawal (penalty and taxes may apply). If you take a hardship withdrawal, your contribution and Duke’s contribution will be suspended for six months. Contact your investment carriers for the appropriate forms and for more information about tax consequences. ⁄ • If you are older than age 59 12, you may take employee contributions without a penalty, but taxes will apply if you are not rolling it over to another retirement plan or Individual Retirement Account (IRA).
Frequently Asked Questions and Answers
1. What are some of the key factors I need to consider to determine how much to contribute and which investment options to select?
• The amount of money you will need in retirement. The retirement investment carriers are a great source of information in order to plan for retirement and determine your financial needs. • The time horizon until you will retire. An investment made with 30 years left until retirement may be quite different than an investment made with five years left until retirement. • Your tolerance for risk. The various funds
Loans
You may take loans with TIAA-CREF or AIG VALIC only. Contact the investment carriers directly to get proper forms.
offered through the Faculty and Staff Retirement Plan can accommodate investors with different risk tolerance levels.
2. How is the 403(b) plan different and/or similar to a 401(k) plan?
The 403(b) retirement program is very similar to a 401(k) program. Both 401(k) and 403(b) plans allow participants to set aside money for retirement on a pre-tax basis. Both plans follow guidelines set
BenefitsPLUS
Your Choices at Duke
Use this Enrollment Kit to sign up for your 403(b) plan today
This Enrollment Kit provides you with important information and materials to enroll in the Duke University & Health System 403(b) Plans (Savings for Retirement Plan and Faculty and Staff Retirement Plan). Duke offers The Savings for Retirement Plan for eligible employees who are paid on the biweekly payroll or are a faculty or exempt staff member scheduled to work fewer than 1,000 hours per year. Students and temporary or casual labor employees who normally work fewer than 20 hours per week are not eligible to participate. The program is funded by your contributions. You make contributions through payroll deduction. Duke offers the Faculty and Staff Retirement Plan for eligible faculty and staff members. You are eligible to participate in the Faculty and Staff Retirement Plan if you are paid on the monthly payroll and are scheduled for at least 1,000 hours per year. House Staff, post-doctoral, intern positions, and students are not eligible to participate. The program is funded by both your and Duke’s contributions. You may make contributions through payroll deduction, and Duke will make a contribution if you contribute at least 3% and are at least age 21 and have completed one year of service. (Please see Duke’s Contribution on page 4.) Please refer to the Savings for Retirement Plan Summary Plan Description or the Faculty and Staff Retirement Plan Summary Plan Description for detailed information. The term “Duke” is used throughout this document. For purposes of this Enrollment Kit, “Duke” refers to the University, Duke University Health System, Inc., and any other entity which is or becomes controlled by Duke University and where, upon appropriate action by the Board of Trustees, the employees of that entity are included in the membership of this plan. Duke also offers the Employees’ Retirement Plan (ERP) for those employees paid on the biweekly payroll. Please refer to the summary plan description on the Employees’ Retirement Plan for more details.
1
Table of Contents
Your Retirement Plans at Duke . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
403(b) Retirement Plan Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Understanding the Duke 403(b) Retirement Plan . . . . . . . . . . . . . .3
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Enrolling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Contribution Minimums and Maximums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Rollovers to the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Duke’s Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Making Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Changing Contribution Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Changing Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Transferring Between Investment Carriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Withdrawals Before Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 When You Leave Duke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Frequently Asked Questions and Answers . . . . . . . . . . . . . . . . . . . .5 Employee Contribution/Change Form Instructions . . . . . . . . . . . . .6 Mutual Fund Classes and Market Indices . . . . . . . . . . . . . . . . . . . .7 Retirement Manager Instructions . . . . . . . . . . . . . . . . . . . . . . . . . .10 Helpful Telephone Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Instructions for Investment Carrier Applications . . . . . . . . . . . . . .13
Special Instructions for TIAA-CREF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Your Retirement Plans at Duke
Many financial experts estimate that you will need 70% to 90% of your final working income in retirement. It is not likely that any one retirement benefit plan will replace this much of your income. However, the three sources below can work together to help you retire comfortably. 1. Social Security — A program administered by the federal government. You and Duke contribute equally through payroll taxes. 2. Duke’s Contribution to your retirement • Employees ’ Retirement Plan — A pension plan funded entirely by Duke for employees paid biweekly. Employees who work at least 1,000 hours in the first year of employment or a future fiscal year and are 21 years of age or older automatically become members of the Employees’ Retirement Plan (ERP). This plan is called a defined benefit plan, which means that the benefit received from the plan is based on a formula. For more information on this plan, please refer to the Employees’ Retirement Plan Summary Plan Description which will be mailed to you when you become a plan member or log on to the web site at: www.hr.duke.edu/benefits . • Faculty and Staff Retirement Plan — Duke contributes to your retirement through this 403(b) plan. The Duke contribution is conditional upon your participation and is based on your salary. If your immediate previous employer was
2
hospitals, medical research organizations, some publicly supported/community organizations) or a state educational organization and were receiving employer contributions under a Code Section 403(b), 401(k), or 401(a) retirement plan maintained by the prior organization, you may participate and Duke’s contributions may commence upon your employment. You must provide proof of participation with your previous employer’s plan when you enroll in Duke’s plan. Proof of participation should be on your former institution’s letterhead and include: termination date, verification of status as a 501(c)(3) or state educational organization, and that the employer contributed to your retirement plan. 3. Your Contributions • Savings for Retirement Plan — You voluntarily contribute to your retirement through this 403(b) plan. • Faculty and Staff Retirement Plan — You voluntarily contribute to your retirement through this 403(b) plan. In general, you must contribute at least 3% to get the Duke contribution and have at least one year of service. Exceptions are made if you are between the ages of 21-35 or if your immediate past employer was a non-profit or a state educational organization.
403(b) Retirement Plan Checklist
Use this checklist to help you enroll in one of the Duke University 403(b) Retirement Plans.
an organization described in Section 501(c)(3) of the Internal Revenue Code (the Code) (examples: churches, schools, colleges/universities,
Read this Enrollment Kit for important information. Choose your investment carrier(s) and make your investment fund selection(s). Included
in this kit is a listing of the mutual fund classes offered. If you would like a complete list of all the funds, please visit www.hr.duke.edu/benefits/retirement/ vps.html and click on the “Investment Performance Summary” or call the Human Resource Information Center (HRIC) at (919) 684-5600. Complete the appropriate investment carrier application(s), included in this kit. To enroll on-line, log on to Retirement Manager at www.hr.duke.edu/benefits/ retirementmanager (see Retirement Manager Instructions on page 10). To enroll using paper, for monthly paid employees, complete the “Monthly Employee Contribution/Change Form,” and for biweekly paid employees, complete the “Biweekly Employee Contribution/Change Form,” included in this kit, to indicate the percentage or dollar amount per pay period and the allocation to each of the investment carriers you have selected. Mail the investment carrier application(s) to Duke Benefits. Please refer to page 12 for addresses.
invest (which investment carriers and which funds) and how much to invest. Your contributions can only be made through payroll deduction.
3
Eligibility
You are eligible to participate and begin making your contributions upon commencement of your employment with Duke.
Enrolling
In order to sign up for one of the Duke University Retirement Plans, you must know how much you would like to contribute and where you would like your contributions invested (investment carriers and funds). You can enroll online by accessing the Retirement Manager web site at www.hr.duke.edu/ retirementmanager (see Retirement Manager Instructions on page 10). To enroll using paper, for employees paid monthly, complete the “Monthly Employee Contribution/Change Form,” and for employees paid biweekly, complete the “Biweekly Employee Contribution/Change Form,” included in this enrollment kit, to indicate the percentage or dollar amount per pay period and the allocation to each of the investment carriers you have selected.
Understanding the Duke 403(b) Retirement Plans
The Duke University Retirement Plans are 403(b) plans, which are tax-deferred retirement savings plans. Any contributions that you make to this plan are on a tax-deferred basis. The Internal Revenue Service (IRS) taxes your contributions and the interest earned on your contributions when you withdraw them at retirement. You choose where to
Contribution Minimums and Maximums
The minimum contribution allowed by the plan is $12.50 per pay period if you are paid biweekly and $25.00 per pay period if you are paid monthly. The maximum contribution allowed by the IRS is $14,000 in 2005 and will increase by $1,000 each year until it reaches $15,000 in 2006.
Special Provisions
current plan year at www.hr.duke.edu/benefits. Under procedures adopted by Duke, Duke’s contributions will only be made for those months during which you make the minimum contribution of 3% (1% or 2% for those between 21 and 35). For information regarding the amount of Duke’s contribution for prior plan years, contact the HRIC. Note that if your salary-reduction agreement or after-tax contribution agreement is terminated or changed to a percentage below the minimum contribution of 3% (1% or 2% for those between 21 and 35), Duke’s contributions will cease as of the effective date of such termination or change.
• If you are over age 50 and contributing the $14,000 maximum, the IRS allows you to contribute another $4,000 in 2005. That amount will increase by $1,000 each year through 2006. • If you have more than 15 years of service at Duke and you have contributed less than $5,000 times your years of service to the 403(b) plan in previous years, you may be eligible to increase your annual contribution. Please contact the HRIC to find out if you are eligible for this provision.
Rollovers to the Plan
403(b), 403(a), 401(k), 401(a), governmental 457, and IRA assets are all interchangeable. This means they can all be rolled from one plan to another provided your employer allows rollovers from different retirement sources. Contact your investment carriers for more details if you are interested in rolling over funds into one of the Duke University 403(b) Retirement Plans.
Making Changes
Changing Contribution Amounts
You may change the amount you are contributing once per pay period. You can visit our web site at: www.hr.duke.edu/benefits/retirementmanager to change your contribution. See Retirement Manager instructions included on page 10. This change must be received by the Benefits Office 30 days before you receive your paycheck. This change can be done using the Retirement Manager or by completing the Employee Contribution Change Form and investment carrier applications found in this enrollment kit.
Vesting
Duke 403(b) Retirement Plans
All of your contributions and all of Duke’s contributions made to your 403(b) accounts are immediately 100% vested. This means you have a right to these contributions when you separate from service.
Changing Funds
You may change the funds in which you are invested as often as you like by contacting the investment carriers directly (use the telephone numbers or web addresses listed on page 12). For example, if you want to change from Fidelity Contra Fund to Fidelity Freedom Income Fund — call the Fidelity telephone number or log on to their web site. You may add investment carriers or redirect future contributions to different investment
Faculty and Staff Retirement Plan — Duke’s Contribution
Duke’s contribution is determined each
4
year and published prior to the beginning of the plan year (January 1 to December 31). You can obtain the University Contribution for the
carriers by logging on to Duke’s web site at www.hr.duke.edu/benefits/retirementmanager.
When You Leave Duke
Your contribution:
5
Transferring Between Investment Carriers
You may transfer your funds between investment carriers by contacting the investment carriers receiving the funds directly. For example, if you are transferring from Fidelity to Vanguard, contact Vanguard. They will send you appropriate paperwork and instructions.
• Can remain in the Duke plan until retirement, • Can be rolled over into an IRA, 401(a), 401(k), 403(a), 403(b), or governmental 457 plan if your new employer allows, or • Can be withdrawn as cash (IRS penalties may apply if you are younger than age 59 12). ⁄
Withdrawals Before Retirement
• If you are still employed at Duke and younger than age 59 12, you may only take employee ⁄ contributions through a hardship withdrawal (penalty and taxes may apply). If you take a hardship withdrawal, your contribution and Duke’s contribution will be suspended for six months. Contact your investment carriers for the appropriate forms and for more information about tax consequences. ⁄ • If you are older than age 59 12, you may take employee contributions without a penalty, but taxes will apply if you are not rolling it over to another retirement plan or Individual Retirement Account (IRA).
Frequently Asked Questions and Answers
1. What are some of the key factors I need to consider to determine how much to contribute and which investment options to select?
• The amount of money you will need in retirement. The retirement investment carriers are a great source of information in order to plan for retirement and determine your financial needs. • The time horizon until you will retire. An investment made with 30 years left until retirement may be quite different than an investment made with five years left until retirement. • Your tolerance for risk. The various funds
Loans
You may take loans with TIAA-CREF or AIG VALIC only. Contact the investment carriers directly to get proper forms.
offered through the Faculty and Staff Retirement Plan can accommodate investors with different risk tolerance levels.
2. How is the 403(b) plan different and/or similar to a 401(k) plan?
The 403(b) retirement program is very similar to a 401(k) program. Both 401(k) and 403(b) plans allow participants to set aside money for retirement on a pre-tax basis. Both plans follow guidelines set
