2020 Employee Benefits Book | Page 21

Employee Contributions • Contribute from 2 − 75% of pay pretax: up to the IRS maximum ($19,500); additional limits apply to highly compensated employees as defined by the IRS • “Catch-up” contributions allowed for employees 50 or older: up to the IRS maximum ($6,500) • Roll over account balances from a former employer’s qualified plan into the Retirement Savings Plan at any time Renown’s Investment in Your Future Renown matches employee contributions immediately at a rate of dollar-for-dollar for the first 3% and fifty cents on the dollar for the following 2%. This results in a total matching contribution of 4% when an employee contributes 5% or more to their 401(k) plan. Where else can you get an 80%* return on your money? Vesting Schedule Vesting refers to your right of ownership of the money in your account. You are always 100% vested in your own contributions and their earnings. You become vested in Renown Health contributions based on the following schedule: • Less than 2 years of employment: 0% • 2 years: 25% • 5 years of employment: 100% • 3 years: 50% • 4 years: 75% Investment Advice You don’t have to guess which investments are right for you. Renown and Vanguard provide you with different ways to get investment help: • Target Date Retirement Funds • Vanguard’s Managed Account Program • Financial Engines • Vanguard Financial Planning 55+ Financial Engines and Vanguard Financial Planning 55+ are available at no charge, while Vanguard’s Managed Account Program is offered for a nominal monthly fee. Contact Vanguard at 800-523-1188 for more information on investment advice services. Five Reasons to Participate in the 401(k): 1. You decide how much you can afford to contribute. 2. Participating reduces your current income taxes. 3. The investment choices that match your retirement goals and risk tolerance. 4. Your contributions and earnings accumulate tax-deferred. 5. Employer matching contributions start as soon as you enroll. And for added peace of mind, there are plan provisions allowing you access to your funds before retirement, should the need arise. * 80% return calculated based on 5% contribution with 4% employer match 19