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About the PlansGet to know the benefits of your Plans, and explore ways to make them work harder for you.
Innovative ways to help you save
LG Health/Penn Medicine is committed to helping you fund your retirement years—without having to spend a lot of time or getting a degree in finance. That’s why the Retirement Plans have automated features to help you get started, save more, invest wisely and track your progress. You'll also find investment options that help enable you to tailor your account to your needs and goals, whether you're a do-it-yourselfer or a hands-off investor.
LG Health/Penn Medicine thinks saving for your future is very important and they want to help: For every $1 you contribute to your account (up to 6% of your pay), they’ll add a $0.50 employer match. What's more, they'll deposit another employer basic contribution (equal to 2% of your pay) whether you contribute or not!
Managing your LG Health Retirement Plan account is easier than ever before—all Plans are under the same roof with Prudential Retirement®
At a Glance
All employees are eligible to contribute to either the 403(b) Plan or 401(k) Plan. Your Plan eligibility depends on the organization in which you work:
If you don’t enroll on your own or opt out within 45 days of your hire date, you’ll be enrolled automatically at a contribution rate of 6% of your eligible pay, pre-tax. A contribution rate of 6% is chosen so you will immediately receive the maximum matching contributions from LG Health. Your contributions will be invested in a Vanguard Target Date FundPDF file opens in new window, appropriate for your age. You may enroll today on your own simply by logging in to your account.
When you join the Plan, you automatically enroll in Contribution Accelerator, a free tool that increases your contribution amount by 1% each July 10, until it reaches 10%. You can opt out of Contribution Accelerator or change the increase amount or date of increase anytime.
The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the Target Date Funds will become more conservative as the target date approaches by lessening the equity exposure and increasing the exposure in fixed income-type investments. The principal value of an investment in a Target Date Fund is not guaranteed at any time, including the target date. There is no guarantee that the fund will provide adequate retirement income.
A Target Date Fund should not be selected based solely on age or retirement date. Participants should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. Funds are not guaranteed investments, and the stated asset allocation may be subject to change. You can lose money by investing in securities, including losses near and following retirement.
You can make traditional pre-tax contributions, Roth after-tax contributions or both. (Annual limits are for traditional and Roth contributions combined.)
Pre-tax contributions are contributed before taxes have been taken out. This can lower your current taxable income (and your tax bill) and means every $1 you contribute could cost you less than $1 in take-home pay. The trade-off: Withdrawals are taxable as regular income and could incur a penalty if taken before age 59½.
Roth contributions are contributed after taxes have been taken out. This could lower your take-home pay by the same amount you contribute. The potential benefit: Withdrawals of your contributions and earnings are federal tax-free as long as you have held the account at least five years from your first contribution and are at least age 59½.
Pre-tax or Roth
Which type of contributions to make depends on several factors. In general, you may benefit from pre-tax contributions if you expect your tax bracket to be lower when you withdraw than when you contribute. For Roth, the opposite is true: You may benefit if you expect to have a higher tax rate in retirement than while you're working. The Roth Contributions Calculator can help you decide.
LG Health’s employer contributions
To help you save even more, LGHealth will contribute money to your account—even if you don't.
- Employer matching contributions: LG Health will add $0.50 for every $1 you contribute to your account (up to 6% of pay).
- Employer basic contributions: LG Health will deposit the equivalent of 2% of your pay to your account—whether you contribute or not.
Vesting refers to the portion of your account you own even if you leave LG Health. You’re always 100% vested in your own contributions (and any earnings). You fully vest in LG Health's contributions (and earnings) after three years of service. A year of service is defined as a calendar year in which you worked at least 1,000 hours.
Amounts withdrawn, except for qualified withdrawals from a Roth account, are generally taxed at ordinary income tax rates. Amounts withdrawn before age 59½ may be subject to a 10% federal income tax penalty, applicable taxes and plan restrictions. Neither Prudential Financial nor any of its affiliates provide tax or legal advice—for which you should consult with your qualified professional.
In order for distributions to be made from a Roth account free of penalties and federal income taxes, your Roth account must have been established at least five tax years before the withdrawal, and your distribution must be: a) made on or after the date you attain age 59½; b) made to your beneficiary or your estate after your death; c) attributable to your being disabled; or d) taken because you are a qualified first‐time home buyer (lifetime limit of $10,000).
The LG Health Retirement Plans offer a wide range of investment options covering all the major asset classes, along with two ways to build a diverse portfolio with a single decision: Vanguard Target Date FundsPDF file opens in new window and GoalMaker®Opens in new window
Access to your savings
The Retirement Plans offer the following ways to access money in your account:
Loans—You may request a loan from your account.
Hardship withdrawals—You may request a hardship withdrawal if you have an immediate financial need, such as:
- Medical/Dental expenses incurred by you, your spouse, any of your dependents or primary beneficiary.
- Purchase (excluding mortgage payments) of your principal residence.
- Payment of tuition for the next 12 months of post-secondary education for you, your spouse, or any of your children, dependents or primary beneficiary.
- Payments needed to prevent eviction or mortgage foreclosure on your principal residence.
- Payment of burial or funeral expenses for your deceased parent, spouse, children, dependents or primary beneficiary.
- Expenses for the repair of damage to your principal residence that qualifies for a casualty deduction.
Any outstanding loan balance not paid back at termination becomes taxable in the year of default. Under the Tax Cuts and Jobs Act of 2018 for defaults related to termination of employment after 2017, the individual has until the due date of that year’s return (including extensions) to roll over this amount to an IRA or qualified employer plan.
When you leave employment with LG Health/Penn Medicine or retire, you can make any of the following choices about what to do with your Retirement Plan account balance:
Leave your funds in the Retirement Plans: If your account balance is greater than $5,000, you can leave your money in the Retirement Plans, subject to federal rules on Required Minimum Distributions (RMDs). RMD payments must begin on the later of separation of service or attaining age 70½. A balance that is $1,000 to $5,000 will be rolled over to an IRA, and a balance less than $1,000 will be distributed to you.
Take a full or partial systematic withdrawal (periodic payments to fit your needs): You can opt to receive monthly, quarterly, semiannual or annual installment payments. (These payments are paid in equal amounts over a specified period of time and cannot exceed your life expectancy.)
Take a full or partial lump-sum withdrawal: This option means you can withdraw all or part of your account balance at once. However, if you’re under age 59½ when you withdraw the money, you may face an additional tax consequence for doing so.
Roll over your balance to another eligible retirement program: If you leave LG Health/Penn Medicine for any reason, you can take your account access with you by rolling your balance into another qualified retirement program. Check with your new employer to see if its plan will accept a rollover of your LG Health Retirement Plan assets.
Roll over your balance to an Individual Retirement Account (IRA): If you’re retiring or changing jobs, this is an option. However, you could pay higher fees for investment options and may incur additional custodial fees that you would not have to pay by leaving your assets in the plan. If you do a direct rollover—which means that you have your plan recordkeeper make the withdrawal check payable to the financial institution where you opened your IRA—you can also maintain your money’s tax-deferred status. In other words, by having the check made payable to the financial institution for deposit directly into your qualified personal retirement account, you can avoid the mandatory federal income tax withholding.
Key Plan features
1. Automatic allocationGoalMaker®
At no extra cost, this optional, automated asset allocation and rebalancing program enables you to quickly select and maintain a professionally designed, diversified model portfolio of investments in the Plan, based on your “investor style” (tolerance model for risk) and years to retirement. Keep in mind that application of asset allocation and diversification concepts does not assure a profit or protect against loss in a declining market. You can lose money by investing in securities.Watch the video to learn more about GoalMaker
2. Diversification in a single fundTarget Date Funds
Target Date Funds are diversified investments designed to offer a mix of stock, bond and cash investments that 'target' a specific year—(usually in the fund's name)—when investors expect to start withdrawing their money. The investment mix grows more conservative as the target year approaches by lessening equity exposure and increasing exposure to fixed income-type investments. The principal value is not guaranteed at any time, including the target date.Learn more about Target Date Funds
3. Your contributionsPre-tax or Roth?
Traditional pre-tax contributions can give you a tax break upfront, while after-tax Roth contributions can pay off down the road. Which is right for you? The Roth Contributions Calculator can help you decide.Use the calculator
LG Health Retirement Plans Plan Resources & Quick Actions
ACCESS YOUR ACCOUNT
Bring your future into focus. Log in or register now.Access my accountOpens in a new window
GET IN TOUCH
Questions about your plan or account? Participant service representatives are available weekdays from 8 a.m. to 9 p.m. ET.Contact Prudential