401(K) RETIREMENT PLAN
The Texas Health 401(k) Retirement Plan is designed to help you save for your future. Through before-tax or after-tax contributions to your account, you build income for retirement. You can choose from a variety of investment options to help meet your goals.
All employees of Texas Health are eligible to participate in the plan. You can enroll in the plan anytime and receive matching contributions after you complete one year of service with Texas Health.1
Note: Beginning Jan. 1, 2023, Texas Health’s matching contributions will begin at six months of service.
In 2022, if you are under age 50, you may contribute up to $20,5002 to the 401(k) and up to $27,0002 if you are age 50 or older.
In 2023, if you are under age 50, you may contribute up to $22,500² to the 401(k) and up to $30,000² if you are age 50 or older.
You choose the percentage you want to increase your contributions each year. You may also make part or all of your contributions on an after-tax basis through the Roth 401(k) account.
Employer Matching Contributions
After one year of service, Texas Health provides a generous match for every dollar you contribute to the plan, up to certain limits.1,3 And the longer you work for Texas Health, the greater your match. This table shows the amount of employer matching contributions you receive based on your years of service with Texas Health. You must contribute at least 2% of your pay each payroll period to be eligible for matching contributions. Because Texas Health matches your contributions of up to 6%, when you contribute at least 6% of your pay, you receive the maximum match from Texas Health. You earn vesting credit on your employer matching contributions based on your years of service with Texas Health, as explained in your Employee Benefits Handbook.
|If your years of service with Texas Health equal:||For each $1 you contribute¹, up to 6% of your eligible pay, Texas Health adds:|
|1 but less than 5||$0.75|
|5 but less than 10||$1.00|
|10 or more||$1.25|
1 If you previously worked for Texas Health and earned one or more years of service, you may be immediately eligible for matching contributions. Preexisting service with THM will be counted for matching and toward vesting.
2 Contribution limits may change based on IRS guidelines.
3 The employer match is based on your contribution per pay period. The employer match ends when you have met the IRS limit. For example, if you reach your IRS maximum in June, you would not receive additional employer match because your contributions have ended.
Vesting refers to your ownership of the money in your account. You are always 100% vested in your own contributions (both before-tax and Roth), rollovers from other employer plans or conduit IRA, and investment returns on these amounts. You become vested in Texas Health’s matching contributions, any forfeitures allocated to your account, and the investment returns on those contributions based on your years of service as follows:
|If your years of service with Texas Health equal:||Your vesting in the Texas Health match is:|
|Less than 2||None|
|2 but less than 3||25%|
|3 but less than 4||50%|
|4 but less than 5||75%|
|5 or more||100%|
- You may borrow up to 50% of your 401(k) contribution account ($50,000 maximum).
- You pay back your account with interest.
- You may take up to five years to pay back a general loan.
- You may take up to 20 years to pay back a loan used to purchase your primary residence.
- The minimum loan amount is $1,000.
- A $50 loan processing fee is charged.
Download the Fidelity Net Benefits app to your mobile device to view your account balance, change your contribution amount, or view and change investments.
- Hardship withdrawals for limited reasons are available after you take all available loans.
- In-service withdrawals of your contributions and vested employer matching contributions after age 59 1/2 are available.
- Plan distributions are available when you retire or separate from service.
- Within two weeks of termination from Texas Health, Fidelity is notified of the event. At that time, you may request a distribution from your account by logging on to netbenefits.com/thr or by contacting Fidelity Investments.
- 401(k) Enrollment Guide
- 401(k) Plan Highlights
- 401(k) Summary Annual Report-2019
- 401(k) contributions estimator-2022
- Fidelity QDRO Center
- Frozen Prior Employer 401(k) Plan Highlights
- Frozen PHS & HMHS 401(k) Plan Highlights
- Frozen PHS 401(a) Plan Highlights
- Frozen PHS & HMHS 403 (b) Plan Highlights
- Call 1-877-MyTHRLink (1-877-698-4754) and select prompt 5, press 1
- Meet one-on-one with a Fidelity Retirement Planner
- Check out this video for more details on one-on-one consultations
- Resources through Fidelity: including preparing for and paying for college, financial wellness checkups, managing your personal finances and protecting yourself and your family financially.
- Email THRBenefitsSupport@texashealth.org