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Take Action: Mary Washington
Healthcare 401(k) Plan Termination

As previously communicated, Mary Washington Healthcare has made the decision to terminate the Mary Washington Healthcare 401(k) Plan (the “401(k) Plan”) effective April 15, 2024. As a result, account balances must be distributed under the terms of the 401(k) Plan and as required by federal regulations. This means you will have to take action on your 401(k) balance.

In the meantime, Mary Washington Healthcare is providing webinars, one-on-one sessions, and other education tools now to help you to determine appropriate next steps. This is an important decision, be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets. Please use this time to consult with a trusted financial and/or tax advisor to determine which distribution option is appropriate for you.

As a reminder, both active and terminated associates will be fully vested in the 401(k) Plan as of April 15, 2024, (if you were not previously 100% vested). Learn more about your distribution options below:


REVIEW YOUR DISTRIBUTION OPTIONS

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    Active Associates Only

    Option 1: Group rollover of your 401(k) Plan balance to the Mary Washington Healthcare 403(b) Plan

    Note: You must make an election between May 9 and June 23 to participate in the Group Rollover, your balance will NOT automatically transfer to your 403(b) account if you do nothing.

    STARTING MAY 9

    If you wish to participate in the Group Rollover, the balance of your 401(k) Plan account will be transferred to your Mary Washington Healthcare 403(b) Plan account and invested according to your elections on file*. The group rollover will occur on July 1.

    To participate in the Group Rollover be sure to complete the following actions starting May 9 and no later than June 23.

    1. Log on to NetBenefits® using your existing Fidelity NetBenefits® username and password (or click Register Now to create your account). Forgot your credentials? Click Forgot login on NetBenefits or call Fidelity at 800-328-6608.
    2. Once logged in to your account, select the Mary Washington Healthcare 403(b) Plan.
    3. Click on “Contribution Amount” from the Quick Links menu.
    4. Click on the drop-down box for the Mary Washington Healthcare election section of the screen. You will see the following election option:
      • “Yes” Rollover my account: This election will automatically rollover your entire account balance.
      • “No" Do not rollover my balance”: Your balance will remain in the Mary Washington Healthcare 401(k) Plan until you take separate action, or the plan is terminated (whichever comes first).
    5. Click “Change Contribution Amount” to confirm your election.


    *If you have not made elections, you will be invested in the Plan’s default fund, a Fidelity Freedom® Index Fund Institutional Class that most closely matches your anticipated retirement year assuming an age of 65, as determined by Mary Washington Healthcare. You can view your investment elections any time on NetBenefits®. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed. Please read this information over carefully and consult with your personal tax advisor before deciding.


    Active Associates must make an election between July 1 and August 31 to elect one of the distribution options below

    Option 2: Manual rollover of your 401(k) Plan balance to the Mary Washington Healthcare 403(b) Plan

    Manually move your 401(k) Plan account balance into the Mary Washington 403(b) Plan.

    To begin the manual rollover process, call Fidelity at 800-328-6608.


    Active or Terminated Associates

    Option 3: Roll over your 401(k) Plan balance to an Individual Retirement Account (IRA) or another qualified retirement plan

    Roll over your balance into a personal IRA or another qualified retirement plan account.

    To begin the qualified retirement plan rollover process, please call Fidelity at 800-328-6608.

    Option 4: Receive your entire 401(k) Plan balance as a single lump-sum cash payment

    Take a full cash distribution from the Mary Washington Healthcare 401(k) Plan.

    Your lump-sum payout will be paid directly to you and will be taxed as ordinary income in 2024. The IRS requires the Plan to withhold 20% of your payout for federal taxes. Depending on where you live, state taxes may also be withheld. Your actual tax liability may be more or less than the amount withheld. If you are under age 59½, you may also be subject to a 10% early withdrawal tax that you will be responsible for paying when you file your 2024 tax return.

    To begin the lump-sum payment process, please call Fidelity at 800-328-6608.


    IF YOU DO NOT TAKE ACTION BY AUGUST 31, ANY REMAINING INVESTMENTS YOU HAVE WILL BE LIQUIDATED BY THE END OF THE YEAR.

    • If your balance in the 401(k) Plan is less than $1,000, your proceeds will be sent to you as a taxable distribution, with a check mailed to your permanent address on file as of the date of liquidation.
    • If your balance in the 401(k) Plan is $1,000 or greater, your proceeds will be rolled over to a retirement account at Millennium Trust Company. If this option applies to you, you will receive additional communication prior to the liquidation of your assets and forced distribution out of the Plan.

    LEARN MORE 

    The information below describes additional resources available during the 401(k) Plan termination to help you with your election decision or to assist with retirement planning.

    Attend a webinar

    You are encouraged to attend an online educational session to learn more and get answers to questions you may have through a series of webinars, hosted by a Fidelity Workplace Planning Consultant.

    Register Now>

    Schedule a consultation

    You can also schedule a one-on-one meeting with an experienced representative. Sessions are limited, so register today to attend.

    Register Now>

    Speak with a Fidelity Representative

    Call Fidelity toll-free at 800-328-6608, Monday through Friday, excluding holidays, from 8:30 a.m. to 8:30 p.m. (Eastern time) with questions about the 401(k) Plan termination.

    Frequently Asked Questions

    Read through a set of commonly asked questions and answers compiled to help guide you through the 401(k) Plan termination.

    Learn More>


    Reach out to meet with OneDigital to Discuss Your Retirement Plan and Overall Financial Wellness

    In your confidential 30-minute meeting, you can ask questions about your retirement plan, discuss rollover options, review your investment allocation, and determine an adequate savings rate. OneDigital can also support you through other financial matters including managing debt, saving for a child’s college, and more!

    Call: 443-578-3211
    Email: 401kAdvisor@onedigital.com
    Schedule: Click Here to Schedule with Calendly

    Every effort has been made to provide accurate information in this summary. The information is for informational purposes only; it does not constitute a contract or contractual obligation. In the event of a conflict between this summary and the Mary Washington Healthcare 401(k) Plan document, the terms of the Plan document will control. Copies of Plan-related documents are available by written request to the Plan Administrator at the address provided in the Plan’s Summary Plan Description booklet. Mary Washington Healthcare reserves the right to change, modify, amend, or discontinue its plans at any time and for any reason. 

    Mary Washington Healthcare and Fidelity Investments® are not affiliated. Fidelity is a service provider to Mary Washington Healthcare.

    The third parties mentioned herein and Fidelity Investments are independent entities and are not legally affiliated. 

    Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

    ©2024 FMR LLC. All rights reserved.

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