Frequently asked questions about your plan.

Frequently asked questions about your plan.
How much can I contribute?
The KHN retirement plan is a defined contribution tax sheltered annuity plan developed
under IRS guidelines. This includes an employer
basic contribution, the ability for employees to
contribute on a pretax basis, and an employer
matching contribution.
Any amount up to the IRS maximums, and $5
minimum per paycheck.
It is comprised of two parts: the Basic Contribution
and the Annual Dollar Amount Contribution.
The Basic Contribution allocated to all eligible
participants is 2.5% of your annual salary.
An additional Annual Dollar Amount Distribution
is currently given to participants earning less than
an hourly rate of $18.52.
An additional Basic Contribution of 2.5% is currently given to employees earning more than an
annual rate of $40,516.88.
What is the KHN Employer Matching?
KHN will contribute $0.25 for each $1.00 you contribute of the first 4% of your annual salary.
For example, if your base salary is $25,000 and you
contribute 4% ($1,000), KHN will contribute $250.
Certain employee job statuses are not eligible—
check with your HR department if you are not
full- or part-time.
Employees age fifty (50) or older are also eligible
for additional catch-up contributions.
2008
Basic Contribution
Limit
50+ Catch-up
Limit
$15,500
an additional $5,000
What “catch-up” contribution can I make?
If you have reached age 50 or will reach 50
during the calendar year and are making the
maximum plan or IRS pretax contribution, you
may make an additional “catch-up” contribution
each pay period.
What if I contribute the maximum I am allowed?
If you have reached or will reach the maximum
permissible amount under the KHN 403(b) plan,
you are eligible for the KHN 457(b) plan.
What is the 457(b) plan?
It is an additional plan that allows a participant
to defer additional monies and provides another
method for employees to save for retirement
on a tax-deferred basis. Please contact your HR
Office for the FAQ on the 457(b) Plan.
What are my Investment Options?
I want to begin saving for retirement.
What do I do?
Participants can direct both the employee and
employer contributions.
There are two ways to start contributing
to your plan:
For a complete list of investment options,
please go to Fidelity NetBenefits® at
www.fidelity.com/atwork.
– Call Fidelity Investments Customer Service at
1-800-343-0860.
When am I vested?
– Enter your deferral election or changes on the
www.fidelity.com/atwork Web site.
You are vested 100% immediately on your
contributions.
When am I eligible to make tax-deferred
contributions?
You are vested 100% of the employer basic,
matching contributions, Basic Contribution and
the Annual Dollar Amount Distribution after five
(5) calendar years of at least one thousand (1,000)
hours worked each year and are not Part Time
Option 2.
You may enroll anytime after your hire date; there
is no waiting period.
What does “Tax Deferred” mean?
It is an investment in which taxes are paid when
the money is withdrawn from the account.
For more information, visit www.fidelity.com/atwork or call 1-800-343-0860.
What is the KHN Employer Contribution?
FAQs
What is the KHN retirement plan?
FAQs
When can I access my funds?
Withdrawals from the Plan are generally permitted when you terminate your employment,
retire, reach age 59½, become permanently
disabled, or have severe financial hardship as
defined by your Plan. Keep in mind that withdrawals are subject to income taxes and possibly to early withdrawal penalties.
How do I access my funds?
You call Fidelity Investments directly at
1-800-343-0860, 8 a.m. to midnight Eastern time.
Note: Employees with less than five (5) years
of service of at least 1,000 hours each year can
access their own funds, not including employer
funds, by taking a loan, a hardship withdrawal,
or by taking age 59½ distributions. Please note
that withdrawals may be subject to tax consequences and an early withdrawal fee. If paid
back, loans are not subject to penalties. If you
do not repay your loan, you may incur income
taxes and penalties.
The taxable portion of your withdrawal that is
eligible for rollover into an individual retirement
account (IRA) or another employer’s retirement
plan is subject to 20% mandatory federal income
tax withholding, unless it is directly rolled over
to an IRA or another employer plan. (You may
owe more or less when you file your income
taxes.) If you are under age 59½, the taxable
portion of your withdrawal is also subject to a
10% early withdrawal penalty, unless you qualify
for an exception to this rule. The plan document
and current tax laws and regulations will govern
in case of a discrepancy. Be sure you understand
the tax consequences and your plan’s rules for
distributions before you initiate a distribution.
You may want to consult your tax adviser about
your situation.
Can I move money from another retirement
plan into my account in the Kettering Health
Network Retirement Plan?
You are permitted to roll over eligible pretax
contributions from another 401(k) or 401(a) plan
account, or from conduit Individual Retirement
Accounts (IRAs). You should consult your tax
adviser and carefully consider the impact of
making a rollover contribution to your employer’s plan because it could affect your eligibility
for future special tax treatments.
What qualifies as a financial hardship?
KHN limits financial hardship withdrawals to
the following IRS-defined qualifying events:
– Medical expenses previously incurred by you,
your legal spouse, or dependents that are not
covered by insurance.
– Tuition and related educational fees for
the next twelve (12) months of postsecondary education for you, your legal spouse, or
dependents for post-high school education at
accredited colleges and universities.
– Payments necessary to prevent eviction or
foreclosure from your principal residence.
– Costs directly related to the purchase of a
principal residence belonging to you (excluding mortgage payments).
– Payments for burial or funeral expenses for
parent, spouse, children or dependents.
– Expenses for the repair or damage to your
principal residence that would qualify for the
casualty deduction.
– Any other event that is deemed an immediate
and heavy financial hardship by the Secretary
of the Treasury or any federal, state or local
income taxes or penalties reasonably anticipated to result from the hardship distribution.
Note: When declaring a financial hardship, you
must submit the associated, required documentation along with the distribution form.
Only current employees can take loans, and
employees can only have one loan at a time.
Employees can borrow only the employeecontributed money. Loans are not available on
employer-contributed money.
As a Plan participant, you have the ability to exercise voting, tender, and other similar rights for
mutual funds in which you are invested through
the Plan. Materials related to the exercise of these
rights will be sent to you at the time of any proxy
meeting, tender offer, or similar rights relating to
the particular mutual funds held in your account.
I still have more questions. Who do I call?
The minimum loan amount is $1,000 up to 50%
of their contribution and/or roll-in balance.
You may call Fidelity Investments directly at
1-800-343-0860.
For example, if you wanted to take a loan for
the amount of $3,000, you must have $6,000
of your own contributions to qualify for the
amount of $3,000.
You may contact your local Human Resources
Representative:
Loans are repaid back into your account, plus
interest, through after-tax payroll deductions.
To obtain the appropriate loans forms, please
contact Fidelity Investments at 1-800-343-0860.
Generally, you may borrow the lesser of 50% of
your vested account 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 automatically
deducted from your pay through after-tax
payroll deductions.
I have completed the loan application or
distribution form. What do I do now?
Make sure the entire form is completed correctly
and return the form to your Human Resources
Office. The HR office will complete the employer
section and send it directly to Fidelity Investments.
Note: When completing a distribution form, a
spouse’s signature must be notarized. (Loans do
not require a notarized spouse signature.)
Kettering HR office
937-395-8843
Sycamore HR Office
937-384-8792
Grandview/Southview
937-723-3267
Alliance HR Office
937-384-4846
For more information, visit www.fidelity.com/atwork or call 1-800-343-0860.
The cost to initiate a loan is $25, and there is an
annual maintenance fee of $50. The initiation
and maintenance fees will be deducted directly
from your individual plan account.
What are my rights with respect to mutual
fund pass-through voting?
FAQs
How can I take a loan on my contributions?

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