401(k) Retirement Savings Plan Payment Options

Overview | Eligibility | How The Plan Works | Payment Options | 401(k)

Your 401(k) Retirement Savings Plan account may be distributed when you retire, terminate employment, reach age 59 ½ or die. Your payment options may vary based on the event.

There will be tax implications for receiving your benefit. Generally, pre-tax distributions will receive a 20 percent withholding for taxes unless the amount is rolled into an Individual Retirement Account (IRA), or another employer's qualified plan. An additional 10 percent penalty tax will be taken, if funds are not rolled into an IRA or qualified plan, unless you are age 55 or older and retired, or age 59 ½ or older.

Attainment of age 59 ½
Retirement
Termination of Employment
Death

Attainment of age 59 ½

Any actively employed participant who has attained age 59 ½ is entitled to receive all or any portion of their vested account balance.

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Retirement or Disability

When you retire or become disabled you may:

• Take your benefit as a lump sum payment, regardless of amount.
• Roll over your benefit to an IRA or qualified plan
• Receive your benefit in installment payments.

Note: You may leave your benefit in the Trinity Health 401(k) Retirement Savings Plan until April 1 of the year after the calendar year you reach age 70 ½, at which time you must begin taking Minimum Required Distributions.

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Termination of Employment

When you terminate employment with Trinity Health, you may:

• Take your benefit as a lump sum payment, regardless of amount.
• Roll over your account to an IRA or qualified plan
• Receive your benefit in installment payments

Note: You may leave your benefit in the Trinity Health 401(k) Retirement Savings Plan until April 1 of the year after the calendar year you reach age 70 ½, at which time you must begin taking Minimum Required Distributions.

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Death

Upon your death, benefits are paid to your listed beneficiary. Benefits will be paid in one of the following forms as elected by you prior to your death:

• A lump sum payment
• Your spouse's choice of form of payment after your death
• Roll over to another IRA or qualified plan (only available to surviving spouse)
• Receive your benefit in installment payments.

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