The BAYADA 403(b) Plan makes saving simple. It features:
- Employer contributions that can help boost your own savings—it’s like getting a bonus. For years in which an employer match contribution is made, matching contributions will be funded into the 401(k) plan. Only deferrals made after the employee meets the match age & service eligibility requirements will be eligible for the matching contribution. Your service is calculated starting from your original hire date. If you do not already have a 401(k) account prior to 10/1/2020, one will automatically be created for you once the match is funded.
- GoalMaker®— an investment solution that helps you choose your investments and stay on track throughout your retirement planning.
- Automatic payroll deductions make saving easy.
- Wide array of investment options enables you to develop a strategy that best suits your needs.
- Interactive tools (such as the Retirement Income Calculator) to help you manage your account and access retirement planning and education.
Your Contributions and Investments
As an HCE for 2020, your employee contributions to the 401(k) plan were limited to 4% of your plan-eligible compensation. This limitation, plus Internal Revenue Code (IRC)-mandated compliance testing (Actual Deferral and Actual Contribution Percentage Tests), drastically limited the amount you were able to save for retirement.
The 403(b) plan is deemed to pass IRC-mandated compliance testing when 1) employees are immediately eligible and 2) only employee contributions are made to the plan, so you will now be able to save significantly more and those contributions will stay in the plan; no more corrective distributions for your employee contributions! For 2020, you may be able to save up to the IRS limits of $19,500 ($26,000 for employees age 50+)! Your employee contributions are cumulative between the 401(K) plan and the 403(b) plan and cannot exceed the 2020 IRS limits.
IMPORTANT NOTE: Notwithstanding the IRS limits stated above, your contributions for 2020 may be affected due to the short plan year for 2020 for the 403(b) plan. Because the 403(b) plan is effective October 1, 2020, employee contributions to the 403(b) plan cannot exceed $15,344 (plus $6,500 for catch-up eligible participants, for a total of $21,844). As of 2021, you will be able to contribute up to the full IRS limit, and if you have attained age 50, you will be able to make catch-up contributions as well.
For years in which BAYADA makes an Employer Match contribution, the contribution will continue to be funded to the 401(k) plan and will be subject to IRC-mandated compliance testing. In the event of a testing failure, you may receive a corrective distribution for part of your vested employer match contributions and earnings. If you don’t have an existing 401(k) account from the prior 401(k) plan that was effective through 10/1/20, one will be created for you, and you will need to update investment and beneficiary elections in the 401(k) once the match has been deposited after year end.
403(b) plan participants will be subject to the Employer Match provisions in the BAYADA Home Health Care 401(K) Plan. The Employer Match is a discretionary contribution; it is not mandatory, and BAYADA may change or suspend the match in any given year. Historically, BAYADA has matched employee contributions at 35% of the first 4% of employee contributions, for a maximum match of 1.4% of eligible compensation. To be eligible for the match, you must meet the match eligibility age and service requirements of attainment of age 21, 1 year of service and 1,000 hours during your anniversary year or subsequent plan year. Only employee contributions made on the first day of the month coincident with or immediately following completion of the match age/service eligibility requirements will be matched. If you separate from service during the year, in addition to having met the plan eligibility requirements, you must have worked over 500 hours in your year of separation to qualify for that year’s match allocation. The employer match contribution is funded annually, usually by mid-March following the plan year end. Employer match contributions are subject to the vesting schedule below.
|Years of Service