Attention Aurora Workers: Before you act, talk with a trusted advisor about your options.
What is currently Happening?
Advocate Aurora is implementing a platform change terminating its existing 403(b) incentive savings plan and offering the AAH 401(k) plan. With these changes, you are probably wondering what happens to my current plan and what are my options? We have helped many Aurora employees navigate their options and come to a decision that makes the most sense for their situation.
A few common questions and important dates to know:
- What happens to my current 403(b) plan?
- Since the current 403(b) plan is being terminated, you are required to take a distribution of your 403(b) plan balance. Be careful when choosing your options. Choosing the wrong option can have big tax ramifications.
- Your options include:
a. transfer to the new 401K
b. transfer to an IRA
c. receive a lump sum distribution
- Do I have to move the current plan into the new plan?
- No. You have the option of doing a tax deferred rollover of those funds into another retirement plan or IRA held elsewhere. The administrator or IRA provider can help with the logistics of this to ensure it is done correctly.
- Can I leave my balance where it’s at?
- No. Due to the current plan being terminated, all assets must be distributed from the 403b plan.
- When do I need to make my decision?
- You have until September 30, 2020 to submit paperwork to receive lump sum distributions, rollover to an IRA or another employee sponsored retirement plan. If you decide to move the current plan into the new 401k plan, the timing of the asset transfer will be executed in two periods. If you elect to move the assets from July 1- August 15, 2020, the dollars will be transferred in mid-September. Elections made between August 16-September 30, 2020 will be transferred by late October.
With many time-sensitive decisions to be made, we strongly recommend reaching out for help and guidance. A fiduciary financial planner puts your best interests first and provides advice for your unique situation. We work with many Aurora employees to tailor a financial strategy that ensures their success.
Our mission is to be your trusted partner as you navigate these financial decisions. Let’s set up a time to chat and see what decision makes the most sense for you.