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401(k) plan

Plan details

Welcome to your 401(k) retirement plan. Click below to view the features and highlights of your employer’s retirement plan. 

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

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Employee contributions 

All full time employees are immediately eligible to participate in the plan, except independent contractors and individuals performing services for the University pursuant to an agreement that provides they are not eligible to participate. 
 

Nova Southeastern basic contributions and Nova Southeastern matching contributions

All employees who have completed one year of service are eligible to participate in the plan, except for the following employees:

  • Adjunct professors,
  • Part-time, temporary, or irregular basis employees who work less than 1,000 hours of service per year, 
  • Cluster/field-based employees as defined by the University, and 
  • Non resident aliens 

Starting early has its advantages

Employee contributions

Generally, you may contribute as much as 80% of your annual includible compensation up to the contribution limit for that year. You may increase or decrease the amount you contribute to the plan as often as you want through the Retirement Manager system. 

Contribution Limit

Catch-up contributions

Catch-up contributions

Stop/change employee contributions

You may change your contribution amount or discontinue contributing to your plan at any time and resume contributing again later, subject to your employer's plan provision. In the meantime, your account will continue to grow on a tax-deferred basis. Allow one month's notice for processing.

 

Employer contributions

Basic 

When you meet eligibility requirements, your employer will contribute an amount equal to 2% of your compensation.


Matching 

When you meet eligibility requirements, a matching contribution shall be made based on the amount of your elective deferrals during the year.

  • Participants deferring at least 2% will receive an employer match equal to 6% of compensation.

  • Participants deferring at least 4% will receive an employer match equal to 10% compensation.

The maximum matching contribution made by Nova Southeastern University shall not exceed 10% of a participant’s compensation for any plan year.

 

Vesting

Employee contribution vesting 

You are always 100% vested in your own contributions. 

Employer basic and matching contributions vesting 
The first employer nonelective contribution is 100% vested. Any other employer nonelective contribution will become vested in accordance with the following schedule: 

Years of Service Vesting Percentage
1 0%
2 0%
3 100%

In addition to years of service with Nova Southeastern University, years of service with Museum of Art, Inc. will count for purposes of vesting.

Accessing your money before retirement

Withdrawals

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty. 

Generally, depending on your employer's plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:

  • Attaining age 59½ (employee contributions only)

  • Retirement or separation from service

  • Your death or total disability

  • Hardship (employee contributions only)

The following are some events upon which you may withdraw vested amounts without incurring a 10% federal tax penalty:

  • Attaining age 59½

  • Separation from service at or after age 55

  • Your death or total disability

  • Taking substantially equal payments after separation from service for a period of five years or attainment of age 59½, whichever is later.

In addition, you must begin taking distributions once you reach age 70½ or you retire, whichever is later.

 

Distribution options

VALIC offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on your employer's plan provisions, your withdrawal options include:

  • Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts rollovers

  • Receiving systematic or partial withdrawals

  • Taking a lump-sum distribution

  • Choosing one of the many annuity options available from VALIC

  • Deferring distributions until a later date (but no later than attainment of age 70½) if you are no longer working, allowing your account to continue to grow tax deferred.

Generally, income taxes must be paid on all amounts you withdraw from your plan.

 

Tax-free loans

Tax-free loans make it possible for you to access your account without permanently reducing your account balance. The following applies to loans: 

  • Employee may access up to 50% of their vested balance or maximum of 50,000 (employee and employer contributions).
  • Limited to one outstanding loan at a time.

Defaulted loan amounts will be taxed as ordinary income and may be subject to a 10% federal tax penalty if the employee is under age 59½.

 

Guaranteed death benefit

In the event of your death prior to annuitization, your Portfolio Director contract provides for a death benefit. Whether you contribute to fixed or variable investment options, your contract guarantees that your beneficiary will never receive less than the amount contributed provided no withdrawals have been made from the account. Withdrawals will reduce the death benefit, depending on the account value at the time of withdrawal. All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company.

Also, in the event of your death, the benefit passes directly to your named beneficiary. This generally avoids the costs and delays of probate. Your beneficiary can leave all or a portion of the account balance on deposit, depending on the circumstances. Usually, your beneficiary can make withdrawals at any time without incurring charges from VALIC, subject to tax laws that might require distributions to occur within certain time frames. There also will be no charges from the company if the beneficiary chooses to withdraw the entire account balance.

An array of investment choices

All contributions to your plan will be invested in the Portfolio Director® Fixed and Variable Annuity (Portfolio Director). You can invest in one or a mix of up to 20 options at a time. And with Portfolio Director, you have the freedom to transfer money among the variable and fixed options without charges or tax consequences, subject to certain limitations as detailed in your prospectus. Fixed options can restrict when and how much you can transfer to other investments and how much you may withdraw from the plan in a single year. Remember that annuities are long-term investments, and the value of the variable options you choose will fluctuate so that your investment values might be worth more or less than the original cost. 

Mutual fund plans:      

Annuity plans: 

Mutual fund: To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542. 


Annuity: To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.valic.com or call 1-800-428-2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form series UIT-194, UITG-194 and UITG-194P.