The best day to start saving for your future is today – even if you need to start small. To help you build a secure retirement, our health system offers two savings plans, free financial counseling and financial wellness resources for every stage of life.
Both the 401(a) “automatic” and 457(b) “boost” plans offer a broad range of investment options to suit your goals, time horizon and risk tolerance. If you like to choose your own investments, there’s even a self-directed brokerage option. Review this summary of retirement savings plans highlights and read below for more details.
401(a) Retirement Savings Plan – think of the (a) as AUTOMATIC
You are automatically enrolled in this plan when hired into a benefit-eligible position (0.5 FTE or above). Key features:
- You and the health system both contribute based on your years of service. Health system contributions range from 3–8.5% of eligible earnings (see table).
- Your contributions are made pretax, helping you take home more of your paycheck.
- Your contributions are always 100% vested, yours to keep regardless of how long you stay with our organization.
- Health system contributions are 100% vested after completing 3 years of service.
Years of service** 1,000+ hours/year | Employee | Health system |
0 to 4 | 4 | 3 |
5 to 9 | 4 | 4 |
10 to 14 | 4 | 5 |
15 to 19 | 4 | 6 |
20 or more | 5.5 | 8.5 |
** One year of service is credited for each year in which you work at least 1,000 hours. Contribution levels increase on Jan. 1 following the service year anniversary.
Please note, employees are not able to change 401(a) "automatic" retirement savings plan contribution rates.
457(b) Retirement Savings Plan – think of the (b) as BOOST!
This plan offers a tax-advantaged way for you to boost your retirement contributions and save even more for your future. Key features:
- Save any amount up to the 2023 IRS maximum of $22,500 (or 85% of pay, whichever is less).
- If you are age 50 or older, you may contribute up to $7,500 more.
- These contribution limits are independent of the 401(a) plan. This unique design allows you to save more for retirement than with a traditional 401(k).
- Flexibility to make pretax or after-tax (Roth) contributions, or both.
- Pretax contributions reduce your adjusted gross income, providing income tax savings. Contributions and earnings are taxed when withdrawn at retirement.
- After-tax (Roth) contributions reduce your take-home pay now but allow you to withdraw the money and earnings tax-free when you retire.
- Earnings can be withdrawn tax-free if you are at least age 59-1/2 and you’ve had your Roth account for 5 years or more.
- When you sign up for the 457(b) boost plan, you can choose to automatically increase your contributions by 1% or more each year.
- Consider coordinating your automatic increase date and amount with expected pay increases. That way you may be able realize both an increase in take-home pay and a higher contribution toward your retirement.
- Use Fidelity’s contribution calculator to estimate how increasing your savings just 1% per year can really add up to big retirement savings!
- Your contributions are always 100% vested.
Manage your accounts and get help
Manage your retirement accounts online at NetBenefits.com/AtWork or with Fidelity’s NetBenefits mobile app.
You can also get quick answers and help enrolling from the Fidelity Retirement Service Center at 800-343-0860.
Access FREE planning tools
The health system’s dedicated Fidelity Workplace Financial Consultants, Craig Fischer and Ben Wright, are available to help employees plan for their financial futures. Their confidential planning services are free to all those eligible for the retirement plans.
Choose your preferred appointment type – virtual, in-person or phone.
Other free planning resources:
- Speak to Fidelity’s dedicated team of phone-based planners at 800-642-7131, 7:30 a.m.–8 p.m. CST.
- Get planning help specific to those who work in healthcare at Fidelity’s CheckYourVitals page — no matter where you are in your financial journey.
