JPS Health Network 403(b) Plan

You can begin participating under the Plan on your date of hire. There are no Excluded Team Members. You are eligible to make elective deferrals commencing on your date of hire.

As a Participant, you may elect to reduce your compensation (dollar and cents) and have that amount contributed to the Plan as an elective deferral. There are two types:

Pre-Tax Deferrals: Reduces your taxable income now; taxes are paid when the Plan distributes the deferrals and earnings.

Roth Deferrals: Subject to federal income taxes in the year of deferral; earnings may be tax-free upon qualified distribution (after age 59½ or on account of death or disability, and after a 5-year participation period).

You are always 100% vested in your elective deferrals. Your deferral election does not apply to irregular pay (e.g., bonuses) or taxable fringe benefits. You may revoke or modify your salary deferral election at any time during the Plan Year.

If you are an eligible team member, you may deposit into the Plan distributions received from other plans and certain IRAs (rollover contributions). The Plan accepts rollover contributions from all eligible sources, excluding after-tax contributions. You may request a direct rollover or deposit an eligible amount within 60 days of receipt. Rollover contributions are held in a separate rollover account, are 100% vested at all times, and are subject to investment gains or losses. Roth deferrals accepted as rollovers are accounted for separately. You may withdraw rollover account amounts at any time.

Compensation is defined as your total compensation subject to income tax and paid to you by your Employer.

Adjustments:
- Differential wages are excluded.
- Compensation paid after termination is generally excluded, except amounts paid within 2½ months after termination (or by the last day of the Plan Year) for: regular/overtime services that would have been made had employment continued; unused accrued sick, vacation, or other leave; and nonqualified unfunded deferred compensation includible in gross income.
- Post-severance regular pay, leave cash-outs, and deferred compensation are included; post-severance disability and military continuation payments are excluded.

Plan assets may be invested in mutual funds and Annuity Contracts. You may direct the investment of your Plan account. If you do not direct investments, your account will be invested in the Employer-established default investment alternatives, consistent with ERISA safe harbor rules.

Account balances are segregated for earnings/loss purposes when you direct investments. Periodically, you will receive a benefit statement; notify the Plan Administrator of errors within 30 days.

Password and account security requirements apply to online access through Empower Retirement, including: changing your password at least every six months, not sharing passwords with anyone, and reporting any suspected compromise immediately.

The Plan will pay some or all Plan-related expenses, except 'settlor expenses' (relating to Plan design, establishment, or termination), which the Employer must pay. Expenses may be charged pro rata to each Participant based on account balance, equally to each Participant, or only to Participants who use a specific Plan feature or receive a distribution. Expenses may also differ for terminated versus active Participants. See the Appendix for Plan Expense Allocations for details.

You are always 100% vested in all of your Plan accounts, including elective deferrals, Roth deferrals, and rollover contributions. There is no vesting schedule or waiting period.

You may receive an in-service distribution (subject to administrative limitations on frequency and timing) if you have attained age 59½, or you have incurred a qualifying financial hardship. Note: In-service distributions reduce the value of benefits you will receive at retirement. You may also withdraw your rollover account amounts at any time.

Qualified Reservist Distributions: If you are a reservist or National Guardsman called to active duty after September 11, 2001 for at least 180 days or indefinitely, you may take a distribution of your elective deferrals regardless of age, without the 10% early distribution penalty. You may repay the distribution to an IRA within 2 years following completion of active duty.

Deemed Severance Distributions (Military): If you are on active military duty for more than 30 days, the Plan may treat you as having severed employment for distribution purposes. However, you may not make contributions to the Plan for 6 months after such a distribution.

You may withdraw money on account of financial hardship if you satisfy certain conditions. A hardship distribution reduces your retirement benefit and is not in addition to other benefits.

Qualifying Expenses:
- Medical care expenses (IRC Section 213(d)) for you, your spouse, or dependents.
- Costs directly related to the purchase of your principal residence (excluding mortgage payments).
- Tuition, educational fees, and room and board for the next 12 months of post-secondary education for you, your spouse, children, or dependents.
- Amounts necessary to prevent eviction or foreclosure on your principal residence.
- Burial or funeral expenses for your deceased parent, spouse, children, or dependents.
- Expenses for repair of damage to your principal residence qualifying for the casualty loss deduction (IRC Section 165).
- Expenses and losses from a federally declared disaster if your principal residence or place of employment was in a FEMA-designated individual assistance area (effective January 1, 2018).

Conditions:
- Beginning no later than January 1, 2020, you must certify in writing or electronically that you have insufficient cash or liquid assets to meet the hardship.
- The distribution cannot exceed the amount of your immediate and heavy financial need (may include anticipated taxes and penalties).
- You must have obtained all other available non-hardship distributions under the Plan.
- You are no longer required to suspend salary deferrals for 6 months after receiving a hardship distribution.
- You are no longer required to obtain all nontaxable loans currently available under all employer plans.

Restricted Amounts: Only elective deferrals (not earnings on deferrals) may be withdrawn for hardship from restricted accounts.

Upon termination of employment, you are entitled to a distribution of your account balance within a reasonable time. You must consent to the distribution.

Normal Retirement Age: Age 65. If you remain employed past Normal Retirement Age, you may defer receipt of benefits until actual termination. Benefit payments will begin as soon as feasible upon your request, but generally no later than age 70½.

Disability: Defined as the inability to engage in any substantial gainful activity due to a medically determinable physical or mental impairment expected to result in death or to last at least 12 continuous months, supported by medical evidence. The Plan Administrator may require determination by a licensed physician.

Distribution Methods:
- If your vested account balance does not exceed $5,000: may only be distributed as a single lump-sum.
- If your vested account balance exceeds $5,000 (or another amount per your investment arrangement), options include: a single lump-sum payment; installments over a period not exceeding your assumed life expectancy (or joint life expectancies with beneficiary); or ad-hoc distributions at any time following termination, subject to reasonable Plan Administrator limits.

Required Minimum Distributions: Distributions must begin no later than April 1st following the year in which you reach age 70½ or terminate employment, whichever is later.

Military Service: Qualified military service under USERRA may be counted as service with the Employer. Special benefits may apply for team members who die or become disabled on active duty or who receive military wage continuation payments.

If you die while employed, your account balance provides a death benefit to your beneficiary.

Beneficiary Designation: You may designate a beneficiary of your choosing. Upon divorce, any designation of a spouse as beneficiary is automatically revoked.

If no beneficiary is designated (or the named beneficiary is deceased), the death benefit is paid in the following priority:
(a) Surviving spouse
(b) Children (including adopted), in equal shares; a deceased child's share passes to that child's living descendants
(c) Surviving parents, in equal shares
(d) Your estate

Payment of Death Benefit:
- If the benefit does not exceed $5,000: paid as a lump sum only.
- If the benefit exceeds $5,000: paid in the distribution methods available under the Plan and investment arrangements; the beneficiary may choose unless you elected the method prior to death.

Required Minimum Distributions to Beneficiaries:
- Personal beneficiary: payments must generally begin within one year of death, paid over a period not exceeding the beneficiary's life expectancy.
- Spouse as beneficiary: payments may be delayed until the year you would have attained age 70½.
- Non-person beneficiary (e.g., estate): entire death benefit must be paid within five years after your death, if you die before your required beginning date.

If you terminate employment, begin required minimum distributions, and then die, your beneficiary receives your remaining vested interest and must continue at least the required minimum distribution pace.

Generally, Plan distributions must be included in your taxable income in the year received. Distributions before age 59½ may be subject to an additional 10% federal penalty tax.

Roth Deferrals: Not taxed upon distribution. Earnings on Roth deferrals are also tax-free if the distribution is a 'qualified distribution' (made after age 59½, on account of death or disability, and after a 5-year participation period beginning the calendar year of your first Roth deferral to this or a prior 403(b)/401(k) plan).

Qualified Reservist Distributions: Not subject to the 10% early distribution penalty; may be repaid to an IRA within 2 years following completion of active duty.

Reducing or Deferring Tax via Rollover:
(a) 60-Day Rollover: Roll all or part of a distribution to an IRA or another qualifying employer plan within 60 days of receipt. Most distributions are subject to mandatory 20% federal income tax withholding before you receive them; this reduces the amount available to roll over.
(b) Direct Rollover: Request direct transfer to an IRA or qualifying employer plan; no mandatory 20% withholding applies. This is generally the preferred method.

IMPORTANT: Tax rules are complex. The Plan Administrator will provide a detailed tax notice whenever you receive an eligible rollover distribution. Consult qualified tax counsel before making a decision.

Loans are permitted from the Plan in accordance with the Plan Loan Policy and subject to the limitations of your investment arrangements. Contact the Plan Administrator to request a copy of the Loan Policy.

Plan Amendment: The Employer has the right to amend the Plan at any time, provided no amendment will: (1) use Plan assets for purposes other than the exclusive benefit of Participants or beneficiaries; or (2) reduce the amount credited to any Participant's account.

Plan Termination: The Employer reserves the right to terminate the Plan at any time. Upon termination, all accounts remain 100% vested and will be distributed as permitted by the Plan as soon as practicable. Participants will be notified of any termination.

How to Submit a Claim: Benefits are generally paid without formal claims. Contact the Plan Administrator or investment provider in writing if you believe you are entitled to benefits or if an error has been made.

Denied Claims: If your claim is wholly or partially denied, the Plan Administrator will provide written or electronic notification of the adverse determination. Your claim is subject to a full and fair review.

The following changes to the Plan's hardship distribution provisions are effective for plan years beginning after December 31, 2018:

1. Certification Requirement (effective no later than January 1, 2020): You must certify in writing or electronically that you have insufficient cash or other liquid assets to meet your financial hardship, as a condition of receiving a hardship distribution.

2. No Suspension of Deferrals Required: You are no longer required to suspend salary deferrals and after-tax voluntary contributions for six (6) months after receipt of a hardship distribution. You may continue making contributions.

3. No Loan Exhaustion Required: You are no longer required to first obtain all nontaxable loans available under all plans maintained by your Employer.

4. Expanded Hardship Events (effective January 1, 2018): You may receive a hardship distribution if your principal residence or place of employment was in an area FEMA designated as qualifying for individual assistance in connection with a federally declared disaster, covering expenses and losses (including loss of income) from the disaster. Additionally, the definition of residential casualty loss has been broadened to include casualties not part of a federally declared disaster.

5. Primary Designated Beneficiary: For certain hardship events, a Participant's hardship may include an immediate and heavy financial need of the Participant's primary Designated Beneficiary under the Plan.

Additionally, effective June 30, 2020, Acclaim Physician Group, Inc. (EIN 35-2526373) has adopted the provisions of the Plan as a participating employer.

Retirement Service Center

1-817-702-1030

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