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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

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

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    Active Associates Only

    Option 1: 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 2: 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 3: 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 OCTOBER 31, ANY REMAINING INVESTMENTS YOU HAVE WILL BE LIQUIDATED BY THE END OF THE YEAR.

    • Your proceeds will be rolled over to a retirement account at Inspira Financial. If this 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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