DESERET 401(K) PLAN - DMBA.com
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401KPLN2HBB0220
DENHOD1HBA0119
2020
DESERET 401(K) PLAN
This summary plan description (benefits handbook), or SPD, outlines the
major provisions of the Deseret 401(k) Plan as of January 1, 2020.
KEY POINTS OF THE PLAN
The Deseret 401(k) Plan is a traditional safe harbor defined contribution
plan. You contribute a percentage of your income to your account and your
employer matches a percentage of your contributions.
• You control how your contributions and your employer’s contributions are
invested.
• You’re fully vested in the value of your account. That means you own the
money in your account.
• You may borrow funds from your account and pay them back with interest.
• If you’re married, your legal spouse is your automatic beneficiary.
• For eligible employees hired on or after April 1, 2010, your employer may
also make additional Employer Discretionary Retirement Contributions.
1ELIGIBILITY AND ENROLLMENT SAVINGS OPTIONS
You’re eligible to participate in the plan if you are: The Deseret 401(k) Plan has two savings options:
• Employed by a participating employer. 401(k) Roth 401(k)
• 21 or older. Before Tax* After Tax**
• In an included class of employment as defined Employee Taxes deferred Taxes paid
by your employer. Contributions until funds before
withdrawn contribution
• Regularly scheduled to work at least 1,000
hours a year or you have worked 1,000 hours Employee Taxes deferred Tax free
in the current or prior year. After you meet Contribution until funds
Earnings withdrawn
this requirement, you’re eligible unless you’re
moved to an excluded class of employment, as Employer Match Taxes deferred Taxes deferred
defined by your participating employer. until funds until funds
withdrawn withdrawn
To enroll, log into DMBA’s website and choose
Employer Match Taxes deferred Taxes deferred
the My Retirement drop-down menu and click on Earnings until funds until funds
Access Account or call DMBA Member Services. withdrawn withdrawn
Automatic enrollment * The 401(k) before-tax option offers significant tax advantages. But if you’re
younger than 59½ and employed by a participating employer, government
We encourage you to enroll in the plan as soon regulations restrict withdrawals from this option to cases of specific financial
hardship. See Hardship withdrawals.
as you’re eligible so you can immediately choose
your own contribution election and investment ** Roth 401(k) after-tax investment earnings on your contributions are tax
free if you meet the withdrawal requirements. You cannot withdraw this
allocation. money before you’re 59½, nor within five years of your initial contribution
If you don’t enroll or change your election in date. Withdrawals made from this option when you’re younger than 59½ or
before you end employment are subject to hardship restrictions.
the before-tax option to 0% within 30 days of
eligibility, we’ll automatically enroll you.
When you’re automatically enrolled, your CONTRIBUTIONS TO YOUR
contribution will be 6% of your pay to the ACCOUNT
before-tax option, with a matching 4% from your
Federal law limits the amount you can contribute
employer. Your account will be set up to invest in
to the plan each year and also limits the
the plan’s Long-term Preset Mix Asset Allocation
compensation your employer can use to calculate
Model, which is the Qualified Default Investment
the employer contributions. In 2020, your
Alternative. However, we encourage you to choose
annual maximum contributions to all defined
your own investment mix based on your age and
contribution plans are limited to 100% of your
investment time horizon.
eligible salary or $57,000, whichever is less. For
If within 90 days of your first contribution you the 2020 plan year, your employer can use up
decide you don’t want to participate and you have to $285,000 of compensation to calculate the
not made any modifications to your automatic employer contributions. These limitations may be
enrollment contribution amount or investments, adjusted annually by the Internal Revenue Service.
you may opt out of the plan and request a refund Other limits apply as outlined hereafter.
of your contributions plus any gains/losses. To
opt out, log into www.dmba.com or call DMBA Employee contributions
Member Services.
As a participant, you have several contribution
choices and requirements:
2• Split your contributions between the Catch-up contributions may be made to the
two savings options, or put all of your 401(k) before-tax option and/or the Roth 401(k)
contributions into one option. after-tax option.
• Contribute up to the maximum amount
allowed by law. In 2020, the IRS maximum Employer-matching contributions
is $19,500 in the 401(k) before-tax and Roth When you contribute to the plan, your employer
401(k) after-tax options combined. makes a matching contribution to your account as
• Change your contribution percentage. Your shown here:
contribution must be in whole percentages Your Your Employer’s Total
of your eligible salary, not including taxes and Contribution Contribution Contribution
other deductions. If you have any questions,
check with your payroll department to 1% 1% 2%
make sure your paycheck can cover your 2% 2% 4%
contribution. Depending on your employer’s 3% 3% 6%
payroll cycle, it may take one or two pay
4% 3.5% 7.5%
periods before the change is effective.
5% or more 4% 9% or more
• Take advantage of catch-up contributions if
applicable. To receive a full employer match, you must make
• If you’re working for more than one contributions each pay period throughout the year.
participating employer that offers the Deseret Please note, only money you contribute to the
401(k) Plan, you must contribute the same Deseret 401(k) Plan is eligible for a matching
percentage from each paycheck. contribution from your employer. Contributions
you may make to any other savings program,
Increasing your contributions even through payroll deduction, don’t qualify
for the matching contribution.
We encourage you to increase the amount you
save each year to better prepare for retirement.
You can increase your contributions whenever you Employer Discretionary Retirement
choose by any whole percentage. You may also Contributions (EDRC)
choose to schedule an automatic increase of your For eligible employees hired on or after April
contributions by a whole percentage each year by 1, 2010, Employer Discretionary Retirement
logging into the DMBA website or calling DMBA. Contributions (formerly your Retirement PLUS
Plan contribution) are equal to a percentage of
Catch-up contributions your compensation and are fully funded by your
If you will be 50 or older by the end of 2020 and employer. Your employer chooses the percentage of
will reach the $19,500 maximum combined plan compensation you will receive and this percentage
contribution limit, you can make a catch-up is subject to change each year. The EDRC is
contribution of $6,500 for a total contribution of calculated and deposited by your employer into
$26,000. The IRS indexes the maximum and catch- your EDRC account (formerly your Retirement
up amounts each year. PLUS Plan) within your Deseret 401(k) account at
the end of each regular pay period.
Catch-up contributions must be made
through payroll deductions. To make catch-up Rollovers
contributions, increase the percentage deducted
through payroll for your account. If you have savings in previous employer-
sponsored plans, you may be eligible to roll over
3those account balances into your Deseret 401(k) requirements. Because of this, availability of
Plan account. daily prices and investment information for CITs
This rollover provision is subject to IRS guidelines. is limited. For more information, log into your
Before you begin to roll over your account personal account at www.dmba.com. From the
balances, contact DMBA. DMBA home page, navigate to the Deseret 401(k)
Plan tile (or other savings plan(s) tile). Click the
When you roll over money into your account, Are You Ready for Retirement? (Access Account)
it becomes subject to Deseret 401(k) Plan rules. button at the bottom of the tile. Click Account at
For more information about rollovers, see Tax the top of the page, then click Investments, and
Considerations. Investment lineup, which is in the list of navigation
links on the left of Empower’s participant website.
INVESTMENT INFORMATION The mutual funds available under the plan include
To provide valuable diversification and cover several index funds. An index fund aims to closely
all aspects of a changing market, 15 individual approximate a broad-based, specific index. This
investment options and five preset mix asset is called passive investing. In contrast, an actively
allocation models are available. To decide which managed fund relies on a portfolio management
asset allocation model is right for you, consider team’s research, experience, and expertise to
what your investment risk is and how much time manage a portfolio in an attempt to outperform an
you have to invest before you’ll need your money appropriate index. This is called active investing.
during retirement: short term (zero to four years), The general categories, or asset classes, of
intermediate term (five to 11 years), long term available funds are shown in the investment
(more than 12 years), specialty income (zero to funds table, along with information about each
four years), or stock only (more than 12 years). Or fund’s objectives, primary investments, potential
you’re welcome to create your own investment mix rewards, and risk factors. DMBA reviews the asset
from among the individual investment options. classes and investment options, so they’re subject
If you do not choose an investment option, your to change.
account will be automatically invested in the
Long-term Preset Mix Asset Allocation Model, the
plan’s Qualified Default Investment Alternative.
But we encourage you to review your options and
make your own investment choice.
Please note, you must invest 100% of your account
balance among the funds in whole percentages.
Investment options
The funds available under the plan provide
investment opportunities in significant segments
of the stock and bond markets. Available
investment options include mutual funds and
collective investment trusts (CITs).
Both mutual funds and CITs are made up of
pooled assets and have specific investment
objectives. They are alike in many ways, but have
some important differences. For instance, CITs
are privately held trusts with different regulatory
4Deseret 401(k) Investment Funds
Categories Objectives Primary Investments Potential Rewards Risk Factors
Money Market* (Mutual Provide current income Short-term U.S. Capital preservation and Very low risk. Any risk
Fund) consistent with the government, agency, and low returns from very is primarily because of
preservation of capital and corporate obligations with short-term money market lower income from falling
liquidity. Provide a stable an average maturity of 90 securities. interest rates.*
share price. days or less.
Short-term Bond Provide a higher rate of Investment-grade bonds Principal preservation and Low risk. Moderate
(Mutual Fund) return than the Money of major corporations with fairly low returns from fluctuation in value of
Market Fund with only a maturity of between one short-term debt securities. investments. Any risk
modest changes in the and three years. is primarily because of
value of the principal. lower income from falling
interest rates.
Intermediate-term Bond Provide total return with U.S. government Moderate returns over Low risk because of
(Mutual Fund) consistent preservation securities, corporate time based on interest changes in interest rates.
of capital and prudent bonds, mortgage or asset- payments, sales of debt (Bond values and interest
investment management. backed securities. Many securities, and changes on rates generally move in
use derivative instruments bond values. opposite directions.)
for hedging purposes
or as part of investment
strategy. Average maturity
of three to 10 years.
Inflation-protected Bond Provide a long-term rate Treasury inflation- Protection against Low risk because of
Index (Mutual Fund) of return that outpaces protected securities with inflation. changes in interest rates
inflation. average maturity of seven and inflation. When
to 20 years. inflation is decreasing,
fund will typically
underperform U.S.
Treasuries of similar
maturity.
High-yield Bond Provide a higher yield and A diversified portfolio of Higher income returns Moderate risk. Lower-
(Mutual Fund) higher long-term rate of high-yield bonds, debt and potentially higher rated bonds tend to be
return than investment- securities, and other long-term rates of return significantly more volatile
grade bonds by investing similar instruments issued than other fixed-income than investment-grade
in bonds issued by lower- by various U.S., non-U.S., type investments. bonds and have a greater
rated entities. public, or private-sector degree of default risk.
companies.
Large-company Stock Match the investment Equities included in Moderate to high returns Moderately high risk
Index (Mutual Fund) performance of Standard Standard & Poor’s Stock over time based on because of changes in the
& Poor’s 500 Stock Index. Index. Includes stocks changes in stock values market value of stocks in
from most of the larger and stock dividends. the fund.
corporations in the United
States.
Large-company Provide capital Stocks of large U.S. Moderate to high returns Moderately high risk
Fundamental Stock appreciation from large companies using over time based on because of changes in the
Index (Collective companies by ranking and fundamental index changes in stock values market value of stocks in
Investment Trust) weighing investments by methodology. and stock dividends. the fund.
fundamental measures of
size rather than by market
capitalization.
Mid-company Index Match the performance Equities in the CRSP US Capital appreciation and Moderately high risk
(Mutual Fund) of the CRSP US Mid Cap Mid Cap Index, a broadly fairly high returns over because of changes in the
Index. diversified index of stocks time based on changes market value of stocks in
of medium-size U.S. in stock values and stock the fund.
companies. dividends.
5Deseret 401(k) Investment Funds (Continued)
Categories Objectives Primary Investments Potential Rewards Risk Factors
Small-company Index Match the performance Equities in the CRSP Capital appreciation and High risk because of
(Mutual Fund) of the CRSP US Small Cap US Small Cap Index, a high returns over time changes in the market
Index. broadly diversified index based on changes in stock value of stocks in the fund.
of stocks of small-size U.S. values.
companies.
Small-company Value Provide capital Stocks of small companies Capital appreciation and High risk because of
Stock (Mutual Fund) appreciation from whose stock price to asset high returns over time changes in market value
stocks of smaller value per share is low based on changes in stock of stocks in the fund.
companies believed to be when compared to other values.
undervalued. small companies.
Small-company Growth Provide capital Stocks of small companies Capital appreciation and High risk because of
Stock (Mutual Fund) appreciation from small that have the ability high returns over time changes in market value
companies believed to grow their earnings based on changes in stock of stocks in the fund.
to have rapid growth rapidly. values.
potential.
International All World Match the performance of Equities in the FTSE Capital appreciation and High risk because of
ex-US Index (Mutual the FTSE All World ex-US All World ex-US Index, high returns over time changes in the market
Fund) Index. a broadly diversified based on changes in stock value of stocks in the fund
index of stocks of large values. and changes in the value
international companies of foreign currencies and
in both the Developed political changes.
and Emerging Markets.
International Value Provide capital Stocks in large and Capital appreciation and High risk because of
Stock (Collective appreciation from mid-size companies high returns over time changes in market value
Investment Trust) stocks of companies based outside the U.S. based on changes in stock of stocks in the fund and
based outside the U.S. At least 80% of the fund values. changes in the value of
that are believed to be is invested in developed foreign currencies and
undervalued. countries. political changes.
International Growth Provide capital Stocks of large and mid- Capital appreciation and High risk because of
Stock (Mutual Fund) appreciation from stocks size companies based high returns over time changes in market value
of companies based outside the U.S. that have based on changes in stock of stocks in the fund and
outside of the U.S. that are the potential to grow their values. changes in the value of
believed to have potential earnings rapidly. foreign currencies and
for rapid growth. political changes.
International Emerging Provide capital Stocks of large, mid-size, Capital appreciation and High risk because of
Markets (Collective appreciation from stocks and small companies high returns over time changes in market value
Investment Trust) of companies based in based in the Emerging based on changes in of stocks in the fund and
the Emerging Markets Markets. stock values and stock changes in the value of
that are believed to be dividends. foreign currencies and
undervalued. political changes.
* Please be aware that the money market fund is neither insured nor
guaranteed by the FDIC or any other government agency. Although this PRESET MIX ASSET ALLOCATION
fund seeks to preserve the net asset value of $1 per share, it’s possible to
lose money by investing in this type of fund. MODELS
Note: The investment options include expenses for investment management
DMBA’s investment professionals have developed
and administration and may impose fees or restrictions. For more five preset mix asset allocation models from 15
information about investment objectives, risks, expenses, fees, and so on, individual investment funds. Each asset allocation
please see a fund’s prospectus. All investors should consider investment
objectives, risks, charges, and expenses carefully before investing. Read the
model is designed to match individual risk
Fee & Investment notice and prospectus carefully before you invest. You can tolerance and a general investment horizon, which
find these documents by logging into your account on www.dmba.com or is the time the money is expected to be invested
you can contact DMBA to receive copies of these documents.
before you need it in retirement.
6Please review the following table for specific Investment professionals choose and monitor the
information. For example, you can see that if you preset mixes. But this doesn’t guarantee future
have a longer investment horizon, investments performance.
such as stocks can have long-term gains that Rebalancing of the preset mix asset allocation
outweigh short-term dips in value. But as your models occurs automatically toward the end of
investment horizon becomes shorter, more every quarter. If you select a personal rebalancing
conservative investments may be appropriate. of the funds in your account, rebalancing will
occur based on your selected rebalancing option.
Preset Mix Asset Allocation Models Profiles
Models Objectives Primary Investment Potential Rewards Risk Factors
Short Term Provide investment option Fixed income 70% Capital and principal With the fixed-income
for funds that will start to Equity 30% preservation with low investments, low to
be accessed in zero to four returns; volatility with the moderate risk, which
years small percentage of equity is primarily because
investments to provide of lower income from
some higher returns falling interest rates;
higher risk with the equity
investments, which are
based on market values of
the stocks
Intermediate Term Provide a more aggressive Fixed income 40% Some capital and principal Fairly low risk on 40% of
investment option for Equity 60% preservation with low the investment, which
funds that will start to returns; volatility with is primarily because of
be accessed in five to 11 potentially higher returns lower income from falling
years with equity investments interest rates; higher
risk with the 60% equity
investments, which are
based on market values of
the stocks
Long Term (Qualified Provide a fairly aggressive Fixed income 20% Capital appreciation and Higher risk with the equity
Default Investment investment option for Equity 80% fairly high returns over investments, which are
Alternative) funds that will not be time based on changes in based on market values of
accessed for 12 or more stock values; capital and the stocks; some fairly low
years principal preservation risk with the fixed-income
of the fixed-income investments
investments
Specialty Income Provide income-oriented Fixed income 75% to High levels of income Up to 60% of the fund can
investment option for 100% with attention paid to be held in high-yielding
funds that will start to be Equity 0% to 25% downside risk protection investments, and while
accessed in zero to four they have significantly
years less downside volatility
than equities, they still
have greater volatility
than high-grade bonds
High-yielding investment
exposure will vary as
deemed appropriate by
the Investment staff
Stock Only Provide a fairly aggressive Equity 100% Capital appreciation and Higher risk with the equity
investment option for fairly high returns over investments, which are
funds that will not be time based on changes in based on market values of
accessed for 12 or more stock values the stocks
years
7The following table provides greater detail about the investment fund makeup of the models.
PRESET MIX ASSET ALLOCATION MODELS (As of June 20, 2019)
Asset Classes Short Term Intermediate Long Term Specialty Stock Only
(0 to 4 years) Term (12+ years) Income (12+ years)
(5 to 11 years) (0 to 4 years)
Money Market 10%
FIXED INCOME
Short-term Bond 17% 11% 30%
Intermediate-term Bond 23% 17% 13% 30%
Inflation-protected Bond Index 13% 7% 5% 20%
High-yield Bond 7% 5% 2% 20%
Large-company Stock Index 10% 20% 27% 32%
Large-company Fundamental 4% 8% 11% 14%
Stock Index
Mid-company Index 4% 10% 12% 16%
EQUITIES
Small-company Value Stock 1% 2% 3% 4%
Small-company Growth Stock 1% 2% 3% 4%
International Value Stock 5% 8% 11% 13%
International Growth Stock 4% 8% 10% 13%
International Emerging Markets 1% 2% 3% 4%
TOTAL 100% 100% 100% 100% 100%
8Comparison: Preset Mix Asset Allocation Models
Indicators Short Term Intermediate Term Long Term Specialty Income Stock Only
Time Horizon 0 to 4 years 5 to 11 years 12+ years 0 to 4 years 12+ years
Growth Low Moderate Substantial Low Substantial
Income Moderate Low Low High Low
General Risk:
Year-to-Year Low-moderate Moderate Substantial Low-moderate Substantial
Volatility
30% Diversified 60% Diversified Stock 80% Diversified 100% Diversified 100% Diversified
Allocations Stock 40% Bond Stock Bond Stock
70% Bond 20% Bond
Historical Returns as of 1 Year 5.35 1 Year 3.75 1 Year 2.14 1 Year 7.11 1 Year 0.04
September 30, 2019 3 Year 4.81 3 Year 6.55 3 Year 7.41 3 Year 3.28 3 Year 7.95
(10 Year/Inception*) 5 Year 3.83 5 Year 4.84 5 Year 5.08 5 Year 1.95 5 Year 5.15
10 Year 5.42 10 Year 7.53 10 Year 8.49 10 Year 3.84* 10 Year 9.25
* The Specialty Income Preset Mix Asset Allocation Model (previously known as Current Income) has not been in existence for 10 years. Returns shown are since
the model’s inception in May 2011.
Performance data represents past performance and is not a guarantee or prediction of future results.
Compared to higher rated securities, high-yield bond investment options are subject to greater risk, including the risk of default. A bond fund’s yield, share price,
and total return change daily and are based on changes in interest rates, market conditions, economic and political news, and the equity and maturity of its
investment. In general, bond prices fall when interest rates rise and vice versa.
Growth (increase in value over time or appreciation) and income (current income generation through dividends or interest payments) are investment strategies
that can be used, depending on risk tolerance, to create a balanced investment objective.
Time horizon, generally defined, is the time your money is expected to be invested before you need it for retirement income.
The preset mix asset allocation models have been programmed into the recordkeeping system for easy selection. Individual allocations are available in the
system, with or without the rebalancing feature, based on your individual risk tolerance.
Please consider the objectives, risk, fees, and expenses before investing. For important investment-related materials regarding the individual investment options,
such as the fund fact sheet or prospectus, please log into your personal account at www.dmba.com. From the DMBA home page, navigate to the Deseret 401(k)
Plan tile (or other savings plan(s) tile). Click the Are You Ready for Retirement? (Access Account) button at the bottom of the tile. Click My Accounts at the top of the
page, and then click Investment lineup under Investments, which is in the list of navigation links on the left of Empower’s participant website.
CHANGING YOUR INVESTMENT
All transactions occur at the close of business of
the New York Stock Exchange, which is usually 2
DIRECTION p.m., Mountain Time.
If you want to change your investment allocation, All funds are valued as of the end of the trading
log into your personal account at www.dmba.com. day. Changes confirmed before 2 p.m., Mountain
From the DMBA home page, navigate to the Time, are effective that business day. Changes
Deseret 401(k) Plan tile (or other savings plan(s) confirmed after 2 p.m. or on weekends or holidays
tile). Click the Are You Ready for Retirement? are effective the next business day.
(Access Account) button at the bottom of the Please be aware, circumstances beyond our
tile. Click Account at the top of the page, then control can occur at any time and could delay
click Investments, and then View/Manage my your change request. Access to electronic services
investments, which is in the list of navigation links may be limited or unavailable during periods of
on the left of Empower’s participant website. peak demand, market volatility, systems upgrades,
9maintenance, or for other reasons. DMBA cannot occurs, your money is moved into the new
be responsible for these delays. fund(s) at the current asset value of the new
fund(s). The 15-day restriction begins the day
Future fund elections after your current balance transfer is valued.
Future fund elections affect how your future • Fund managers may impose their own
account contributions are invested: restrictions. See each respective fund
• Future fund elections must be in whole prospectus for more information.
percentages.
• The future fund election you choose applies to PLANNING TOOLS
your contributions, your employer matching, To see your personalized information and other
and Employer Discretionary Retirement online financial planning tools, log into
Contributions. www.dmba.com. You’ll need your DMBA ID
• If you choose a preset mix asset allocation number. After you log in, go to the My Retirement
model, future fund elections also apply to your drop-down menu to access personal and benefit
current balance. The current balance transfer information and financial calculators.
of your existing balance occurs at the closing
market price on the day your election becomes
effective. ACCOUNT INFORMATION
• You cannot choose a preset mix asset You can access information on your account in
allocation model for a future fund election and three ways:
then choose a different investment mix for a 1. Go to www.dmba.com, log in and choose the
current balance transfer, or vice versa. My Retirement drop-down menu and click
Access Account.
Current balance transfers 2. Call DMBA and talk to a Member Services
Current balance transfers affect your existing representative.
account balances: 3. Read your detailed quarterly statement
• Current balance transfers must be in whole showing the value of your account and
percentages. personalized rate of return. We send it out
within 30 days of the end of each calendar
• Current balance transfers apply to your total
quarter. Please check your statements
account balance (employee contributions,
carefully. Statements are considered correct
employer matching, Employer Discretionary
if you don’t notify DMBA of errors within 60
Retirement Contributions, and earnings).
days of mailing.
• You can choose one of the preset mix asset
allocation models, or do a current balance
transfer for your entire account balance among PLAN LOANS
any or all of the individual funds. The Deseret 401(k) Plan is designed to help ensure
• Because the Deseret 401(k) Plan isn’t intended your financial security after you retire. But if you
to be used as a short-term trading vehicle, need the money in your account while actively
DMBA permits only one trade every 15 employed, you can take out a plan loan. By law,
calendar days. you are obligated to repay the loan.
• When you request a current balance transfer,
the money in your existing funds is valued Eligibility
at the closing net asset value (NAV) for that You can apply for a loan if you meet these
business day. When the current balance transfer requirements:
10• You are an active employee receiving regular Loan ramifications:
paychecks from a participating employer, • The promissory note you sign is a legally
including if you’re on paid leave or you’re binding contract. Your employer must
receiving Disability Plan benefits. withhold loan payments from your paycheck.
• You are currently in a class of employment that • You can continue contributing to your account
allows you to contribute to the plan. while repaying your loan. We encourage you
• You have an account balance of at least $1,000 to do so to continue receiving the employer
(not including EDRC funds). match.
• The money you borrow from your account
Loan amounts doesn’t continue to earn investment income.
How much you can borrow is subject to these The interest you pay on your loan is credited
guidelines: to your account and is your sole investment
• You cannot borrow EDRC funds. income on the money you borrow.
• The minimum loan amount is $500. • Depending on net asset value (the dollar value
per share calculated on a daily basis), your
• The maximum loan amount cannot be more loan payments may buy more or fewer shares
than 50% of your eligible account balance and than were sold to fund your loan.
you cannot exceed $50,000 in a 12-month
period. This maximum is reduced from • You pay taxes on the interest portion of your
$50,000 by whatever may have been your loan payments when you later withdraw those
highest loan balance during the previous 12 amounts from your account. You cannot
months, even if you have repaid the loan. deduct this interest from your income taxes.
• If you exceed the maximum amount (which is Payment guidelines:
specified by law), you’re subject to taxes and • Loan payments are made by payroll deduction.
possible penalties. It’s your responsibility to ensure your employer
deducts payments.
General loan provisions • You can pay off your entire loan early without
Loan requirements: a penalty as long as you’re making your
• Your signature is required and your spouse’s scheduled loan payments. But you must pay
signature must be notarized or witnessed by interest to the date of the payoff.
an authorized DMBA representative, not your • Loan payments are credited to your account
employer. proportionally based on your existing future
• You can only have one regular loan from all fund election.
DMBA savings plans outstanding at the same If you end employment with outstanding loans:
time. • You must repay the lump sum of the loan
• You must be debt-free from your loan for 45 within 30 days or it will be treated as a
days to qualify for a new loan. withdrawal from your account with the
• Loan periods are available in monthly associated tax consequences.
increments from 12 to 60 months. • If you have an outstanding loan at the time of
Loan proceeds and fees: your death, your spouse may pay the loan in
a lump sum within 30 days of your death to
• Loan proceeds are taken proportionally from avoid the tax consequences.
each investment fund. Origination and annual
administrative fees apply.
11PLAN WITHDRAWALS
termination, death, retirement, or permanent
disability.
In very limited circumstances, withdrawals are • Employer matching contributions made after
available while you’re still actively working, based January 1, 2001, and the earnings on these
on the following guidelines. contributions are not available for hardship
withdrawals.
Eligibility • Earnings on participant before-tax and Roth
If you’re older than 59½, end your employment 401(k) after-tax contributions aren’t generally
with a participating employer, retire, or become available for hardship withdrawal. But some
permanently disabled, you may be able to Roth 401(k) after-tax contributions and
withdraw all or part of the money in your account. earnings are available in some circumstances.
Contact DMBA for information.
Hardship withdrawals • Outstanding plan loans may affect the
If you are not older than 59½, you may still be availability of funds for withdrawal.
able to withdraw money from your account as a
• If you formerly qualified for Deseret 401(k)
hardship withdrawal. Under IRS criteria, you may
Plan participation and are actively employed
qualify for a hardship withdrawal for:
by a participating employer but don’t currently
• Medical care expenses qualify to participate, withdrawals from your
• Tuition and related educational expenses account may be limited.
• Payments necessary to prevent eviction from • Taxes and possible tax penalties apply to the
a principal residence or foreclosure on the taxable portion of all withdrawals. (See Tax
residence Considerations.)
• Closing costs and down payment for the • Withdrawal by a qualified military reservist
purchase of a principal residence may not be subject to the additional 10% tax
on early payments. (See Tax Considerations.)
• Funeral expenses
Please contact DMBA for specific information.
• Damage to your principal residence caused by
• All required documentation is the
a federally declared disaster
responsibility of the participant.
If you’re married, your spouse must consent to the
EMPLOYMENT STATUS CHANGES
withdrawal in writing.
You must wait at least 90 days between withdrawals.
This may be waived if you’re closing your account Your account may be affected by employment
after your employment ends or you retire. changes such as transferring to another
participating employer, ending employment,
Withdrawal limitations and becoming disabled, or moving to an excluded class
ramifications of employment. The following are some examples
of these status changes and how they may impact
Different withdrawals have different restrictions. your benefit.
Federal law requires us to take money for the
withdrawal in a certain order. Withdrawals Ending employment
depend on when the money was contributed, what
savings option was used, and whether you or your If you end employment for any reason, including
employer contributed the money. These rules apply: retirement, you cannot make further contributions
to your account. Instead, you can do one of the
• Employer Discretionary Retirement following:
Contributions are not available until
12• Leave your account open. You can make rollover election, your total account balance will
withdrawals and current balance transfers, be automatically distributed to you by check.
based on plan guidelines.
• Choose a payment option, if eligible. (See Moving to an excluded class
Payment Options After Employment Ends.) If you change from a position that allows you to
• Close your account and either receive a lump participate in the plan to one that does not (an
sum payment or have the eligible portion of excluded class of employment), you aren’t eligible
your account balance sent as a direct rollover to continue contributing to your account. But
to a qualified plan or IRA of your choice. your account balance will remain in the plan and
(See Tax Considerations and Lump Sums and is still subject to market gains or losses. You may
Direct Rollovers.) continue to make investment changes according to
plan guidelines.
• Roll over other qualified employer-sponsored
plan money into your account if you have If this employment change occurs while you’re
a balance. Minimum balance requirements repaying a plan loan, your payroll-deducted loan
apply. See Mandatory distributions. payments will stop. You’re responsible to continue
your loan payments. Please contact DMBA for
Participants who are under 59½ are required to
more information.
wait 30 days after employment ends before making
a withdrawal.
Transferring your employment
Mandatory distributions If you transfer employment from one participating
employer to another within 30 days, the status
If you end employment and your account
of your account usually isn’t affected. If you’re
balance is less than $5,000, the plan’s mandatory
eligible to participate in the Deseret 401(k) Plan
distribution provisions will apply unless you make
through your new employer, your contributions
a distribution or rollover election. You’ll be given
and loan payments, if applicable, should continue
the option to roll over your account balance to
to be taken from your paychecks. Contact DMBA
an eligible retirement plan or IRA of your choice
to verify your continuing contributions and loan
before the mandatory distribution occurs.
payments.
If your account balance is less than $1,000,
If you’re not eligible to participate in the plan
your total account balance will be automatically
through your new employer, your account will
distributed to you by check—unless you tell us
remain in the plan and will still be subject to
to roll the account balance to another eligible
market gains or losses. You may continue to make
retirement plan or IRA—and will be subject to tax
investment changes according to plan guidelines.
withholdings and possible penalties.
If you have a loan, your payroll-deducted loan
If you are under age 65 and your account balance payments will stop. You’re responsible to continue
is at least $1,000 but less than $5,000 and you do your loan payments. Please contact DMBA for
not make a distribution or rollover election, your more information.
total account balance will be automatically rolled
over to an IRA chosen by DMBA. Receiving Disability Plan benefits
Because your account balance will be rolled If you become disabled and aren’t receiving any
over to an IRA, you won’t be subject to tax income from a participating employer, you cannot
withholding and possible penalties. But there are make contributions to your account. If you’re
fees associated with an IRA that will be deducted permanently disabled, you may choose to leave
directly from your account. If you are age 65 your account open or close your account and do
or over and you do not make a distribution or one of the following:
13• Receive a lump sum payment.
Your options
• Request that the eligible portion of your
• Before-tax contributions, plan earnings, and
account balance be sent as a direct rollover to a
employer-matching contributions may qualify
qualified plan or IRA of your choice. (See Tax
to be rolled into an IRA or another qualified
Considerations.)
employer plan.
If you become disabled while you have a loan,
• You can roll over your Roth 401(k) after-tax
your payroll-deducted loan payments will stop.
money to a Roth IRA or another Roth 401(k).
Contact DMBA if you wish to continue making
loan payments. • If you contributed to the 401(a) after-tax
option prior to 2019 you can roll over your
Also, if you’re receiving Disability Plan benefits,
401(a) after-tax contributions to a qualified
you may be eligible for a plan loan. For more
employer plan or an IRA. But be aware, some
information, please contact DMBA.
plans won’t accept after-tax contributions.
Taking an employer-approved leave of • You can request that your after-tax
absence contributions be sent directly to you.
An employer-approved leave of absence is a Limitations
leave authorized by your employer in which
you continue to participate in the 401(k) Plan. • You can’t roll over installment payments
Examples include maternity/paternity leave, (monthly payment options).
Family Medical Leave Act (FMLA) leave, • Rollovers may be limited by federal
ministerial service, and military service. regulations.
If you do not receive any income from a • You may not be able to roll the money back
participating employer, you won’t receive any into your account after you roll it out. When
employer contributions to your account while you you roll over your money to another plan,
are on a leave of absence. If you have a loan, your it becomes subject to the rules of the other
payroll-deducted loan payments will stop. You’re plan. Before you make a decision, be sure you
responsible to continue your loan payments. understand the rules, fee structures, and tax
Please contact DMBA for more information. penalties of the other plan.
Uniformed Service Employment and
Reemployment Rights Act (USERRA) RETIREMENT—AFTER
If you’re on active duty in the military and
EMPLOYMENT ENDS
return to work within three months of discharge, When you end employment with all participating
resignation, or release from the armed services, employers, you don’t need to close your account.
USERRA gives you special rights. Please contact You can choose to withdraw a portion of your
DMBA for specific information. account balance without proving financial
hardship, based on plan guidelines. But you don’t
LUMP SUMS AND DIRECT
have to take money from your account until you
reach the required beginning date for you to
ROLLOVERS receive payments. At that time, you must choose
a payment option or the default payment option
Any time after you end employment, you can
applies.
receive your entire account balance as a lump
sum payment or roll over your account to another Going to part-time, temporary, or on-call status
qualified plan or IRA. with your employer doesn’t constitute ending
employment. Regular withdrawal provisions
14apply until you actually end employment with all December, this option allows you to keep the
participating employers. funds in your account fully invested during the
Between age 55 and your required beginning date, rest of the calendar year.
you may choose a payment option. (See Payment You’re eligible to choose this option if you have
Options After Employment Ends.) If you’re ended employment, reached your required
between ages 55 and 59½, an additional 10% tax beginning date, and have at least $5,000 in your
may be withheld, depending on the option you account.
choose. To choose this option, you must submit your
application by October of the year in which you
Required minimum distribution want to receive your first payment. You and your
A required minimum distribution is an annual spouse, if applicable, must sign the Automated
payment made to you from your account balance Minimum Distribution Request form.
that is required by federal law. It must be paid to Payments are taken proportionately from all
you by your required beginning date, which is the investment funds in your account.
later of:
You can make partial withdrawals as often as every
• April 1 of the year following the calendar year 90 days or close your account at any time, based
in which you reach age 70½ if you turned 70½ on plan guidelines. Withdrawals won’t reduce the
before or during 2019, or age 72 if you turned amount you receive in December.
70½ after December 31, 2019
If you have ended employment and haven’t chosen
• April 1 of the year following the calendar a payment option or closed your account by your
year in which you end employment with all required beginning date, DMBA will set up the
participating employers Annual Payment Option as the default payment
If you reach your required beginning date and option. (See Required Minimum Distribution.)
haven’t chosen a payment option, you will
automatically begin to receive the required Monthly flexible installment payment
minimum distribution amount as your benefit option
payment. Required minimum distributions aren’t This option provides monthly payments for an
eligible for rollover. identified number of years. You’re eligible to
choose this option if your account balance is at
PAYMENT OPTIONS AFTER least $5,000. If you’re still an active employee at
EMPLOYMENT ENDS age 69½, you may be eligible to set up this option
as well.
To apply for benefits, contact DMBA Member You can specify the number of whole years
Services. You may receive payment of your during which you want to receive payments,
account balance in one of several ways. from two years to the maximum allowed by law.
The maximum number of years is limited by
Lump sum IRS regulations according to life expectancies. It
You can elect to receive your entire account depends on you and your beneficiary(ies)’s age(s).
balance as a lump sum payment. (See Lump Sums DMBA can calculate the maximum number of
and Direct Rollovers.) years for each situation.
You can change the period over which you want
Annual Payment Option to receive payments once per year. To do so,
This option is the required minimum distribution you must complete new paperwork and receive
amount. Since the annual payment is made each approval from DMBA.
15You may change to another payment option, While you’re receiving monthly payments, your
based on plan guidelines. For example, at age 70½ remaining balance generates investment earnings
if you’re no longer working for a participating or losses even though you’re no longer making
employer, you may change to the annual payment contributions to your account. You can transfer
option. your account balance among the various preset
If you must receive a required minimum mixes or funds according to the plan guidelines.
distribution, you may receive an extra payment at (See Changing Your Investment Direction.)
the end of the year to meet that requirement.
Your balance will be paid pro rata, meaning the TAX CONSIDERATIONS
payments will be taken proportionately from all This information on tax considerations is intended
investment funds in your account. as a summary only. Federal tax laws are complex
You can make partial withdrawals as often as every and subject to change. To help explain tax
90 days or close your account at any time, based considerations, the federal government has issued
on plan guidelines. a Special Tax Notice Regarding Plan Payments
While you’re receiving monthly payments, your that includes more information. Also, before you
remaining balance generates investment earnings make decisions about receiving money from your
or losses even though you’re no longer making account, you may want to consult a qualified
contributions to your account. You can transfer tax adviser. DMBA representatives aren’t tax
your account balance among the various preset advisers.
mixes or funds according to the plan guidelines. To avoid being taxed on a withdrawal that can
(See Changing Your Investment Direction.) be rolled over, you must roll over your payment
to another qualified retirement plan or IRA
Fixed-dollar installment payment option within 60 days of receiving it. If you know you’re
This option provides fixed-dollar monthly going to roll over your payment, request a direct
payments. You’re eligible to choose this option if rollover instead of a withdrawal so you can avoid
your account balance is at least $5,000. If you’re tax complications. (See Lump Sums and Direct
still an active employee when you reach age 69½, Rollovers.)
you may be eligible to set up this option as well.
20% federal income tax withholding
You can choose a payment of only what you need,
$100 being the minimum. You may change the
requirement
amount of your payment once per calendar year. The taxable portion of a withdrawal may be
For more information, contact Member Services. subject to a mandatory 20% federal income tax
withholding, which may be less or more than your
You may change to another payment option,
actual tax rate. The 20% will be withheld in the
based on plan guidelines. For example, at age 70½
following cases:
if you’re no longer working for a participating
employer, you may change to the annual payment • You take a withdrawal.
option. • You choose not to have your funds directly
If you must receive a required minimum rolled over into another qualified plan or IRA.
distribution, you may receive an extra payment at • Your scheduled payments will last fewer than
the end of the year to meet that requirement. 10 years. If your payments last 10 years or
Payments are taken proportionately from all more, you will be asked to make your own
investment funds in your account. election by completing an IRS form W-4P.
You can make partial withdrawals as often as every Your withdrawal may not be subject to the
90 days or close your account at any time, based mandatory 20% withholding if you take a hardship
on plan guidelines. withdrawal or required minimum distribution.
16Because these aren’t eligible to be rolled into IRAs mandatory withholding or a state that doesn’t
or other qualified plans, they aren’t subject to the allow withholdings. This doesn’t apply to states
mandatory withholding even though they are that do not permit withholdings.
taxable.
Again, you may want to contact your tax adviser Taxes on payments to beneficiaries
about the tax consequences of any withdrawal. If your account balance is paid to your
Unless requested, DMBA doesn’t withhold beneficiary(ies), either a spouse or an alternate
20% from hardship withdrawals and required payee (including a trust), the beneficiary(ies) is
minimum distributions. responsible for paying all taxes when the money is
The 20% withheld is credited to you when you withdrawn.
file your tax return for the calendar year. The date
of your check determines the calendar year in Estate taxes
which the payment is taxable. A tax statement and Payments may be subject to federal estate taxes.
information will be mailed to you by January 31 of This is true regardless of where the payment goes.
the following year indicating the taxable amount
withdrawn and the taxes withheld, if any. Other taxes
The 20% federal tax withholding may apply Other taxes, such as U.S. territorial or foreign
when you receive some of the payment options. country taxes, may be applicable.
State taxes may also be withheld. Because these
PAYMENT OPTIONS AFTER YOUR
withholdings will reduce the payment you receive,
you’ll need to request a higher payment amount
to cover withheld taxes if you want to receive a DEATH
specific dollar amount each month. We can help
If you die while receiving a payment, guidelines of
you calculate the payment you need to request.
that payment option will be followed.
Additional 10% tax If you die before your required beginning date and
before choosing a payment option, your account
An additional 10% federal tax (an early
balance will be paid as follows:
withdrawal penalty) may apply to the taxable
portion of your payment. This is in addition to • If you’re single, your account balance will
regular income tax. The 10% will not apply to: be paid to your beneficiary(ies). If you don’t
designate any beneficiary(ies) before your
• Participants older than 59½, surviving
death, 100% of your account balance will be
spouses, beneficiaries, people with certain
paid to your estate.
disability statuses, or retirees.
• If you’re married, 100% of your account
• Withdrawals of your Roth 401(k) after-tax or
balance will be paid to your surviving spouse.
401(a) after-tax contributions. But earnings
If you designated beneficiary(ies) with
may be subject to the 10% tax.
your spouse’s valid consent, your account
• Payments to an alternate payee resulting from balance will be paid to your designated
a QDRO. (See Divorce and QDROs.) beneficiary(ies).
• Withdrawals made between ages 55 and 59½ if If the account balance is payable to your estate,
you work until your 55th year of age. in some cases the estate may be small enough
that an affidavit of small estate can be submitted.
State income tax The court will either recognize the personal
You may choose whether or not you want state representative you named in your will or
taxes withheld, unless you live in a state with appoint one. This person must file the necessary
paperwork with DMBA. Then we will release your
17funds to the personal representative on behalf of • A trust (some limitations apply)
your estate. • Entities such as charitable organizations
Spousal protection You cannot name your employer or your estate as
your primary or alternate beneficiary(ies).
The plan will automatically pay 100% of your
If you designated multiple beneficiaries and a
account balance to your spouse if:
primary beneficiary dies before you do but you
• You’re legally married when you die. don’t designate a new beneficiary, the benefit
• You die before your required beginning date payment for the predeceased primary beneficiary
and before payments begin. will be equally distributed among your remaining
• Your spouse is still alive. living primary beneficiary(ies). The same applies
to predeceased alternate beneficiary(ies) if no
• You haven’t chosen a payment option or primary beneficiaries exist.
designated beneficiary(ies) other than your
spouse. To designate or change your beneficiary(ies), go to
www.dmba.com or submit a completed Beneficiary
• Your beneficiary(ies) designation isn’t valid, Form to DMBA. These are the only ways your
such as if you named someone other than beneficiary(ies) designations will be valid with
your spouse without your spouse’s written, DMBA.
notarized consent.
You and your spouse may waive this spousal Married participants
protection if you both agree to name primary Married participants must meet additional
beneficiary(ies) other than or in addition to your requirements. If you choose to name primary
spouse. This waiver is required even if you name a beneficiary(ies) other than or in addition to
trust as your primary beneficiary. your spouse, including a trust, your spouse must
If your marital status changes, you must complete provide written, notarized consent by signing the
a new beneficiary form and get your new spouse’s Spousal Consent Waiver portion of the DMBA
consent. A waiver election is valid only for the Beneficiary Form in the presence of a notary
spouse consenting to the waiver. public or an authorized DMBA representative.
If you update your beneficiaries online and
BENEFICIARIES name someone other than, or in addition to,
your spouse, a waiver form will be sent to you to
By default, your beneficiary is your legal spouse complete and return before the online election will
if you’re married, or your estate if you’re single. be valid.
You may designate a different beneficiary at any
If your marital status changes, you are responsible
time. It is your responsibility to submit valid and
for updating your beneficiary information with
up-to-date primary and alternate beneficiary(ies)
DMBA.
so your benefit is paid according to your wishes
after your death. Please regularly verify that your
beneficiary(ies) designations with DMBA are
Trusts
current. You may change or revoke the election as If you name a trust as your primary beneficiary,
often as you wish, but your spouse must consent to DMBA needs a complete copy of the trust
any change. document upon your death. If you change your
trust, check to make sure your beneficiary(ies)
For your beneficiary(ies), you can name:
designations for your account are still valid.
• Your current spouse
• Any other person or persons
18PAYMENTS TO BENEFICIARY(IES)
The payments must begin by December 31 of
the year after your death.
After your death, DMBA transfers your account • Leave the account open until December 31 of
balance into a new account established for the fifth year after your death. Until that time,
your beneficiary(ies). Your beneficiary(ies) can your beneficiary(ies) can make withdrawals
withdraw some or all of the funds in the new and current balance transfers, based on plan
account, based on plan guidelines, without guidelines. At the end of the fifth year, your
needing to prove financial hardship. Your beneficiary(ies) must close the account.
beneficiary(ies) is responsible for paying all taxes
• Make a direct rollover to an IRA or an
due after making withdrawals from the account.
inherited IRA by the end of the fourth year
If you die before receiving payments, payments after your death. The 20% mandatory tax
are made based on your current beneficiary(ies) withholding rules won’t apply. But other
designation: government guidelines do, so contact a tax
adviser.
If your beneficiary is your spouse, he or
she may: If your beneficiary is a trust or if your
• Take a lump sum payment. account defaults to your estate, your
• Set up monthly payments if your account trustee or executor may:
balance is at least $5,000 and your spouse is • Take a lump sum payment.
at least age 55. Your spouse can choose the • Set up monthly payments if your account
monthly flexible installment payment option balance is at least $5,000 and you were at least
or the fixed-dollar installment payment option age 55 when you died. The trustee or executor
any time before your required beginning date. can choose the monthly flexible installment
• Leave the account open until your required payment option or the fixed-dollar installment
beginning date. Your spouse can make payment option for up to five years.
withdrawals and current balance transfers, Government guidelines apply. The payments
based on plan guidelines. He or she may also must begin by December 31 of the year after
be eligible for the annual payment option. your death.
• Make a direct rollover into an IRA or other • Leave the account open until December 31 of
qualified plan. The 20% mandatory tax the fifth year after your death. Until that time,
withholding rules won’t apply as they do with your trustee or executor can make withdrawals
other withdrawals. and current balance transfers, based on plan
guidelines. At the end of the fifth year, your
If you are single or if your trustee or executor must close the account.
beneficiary(ies) is someone other than • In the case of a trust, make a direct rollover
your spouse, your beneficiary(ies) may: to an inherited IRA. An estate cannot make
• Take a lump sum payment. a direct rollover. The 20% mandatory tax
withholding rules won’t apply. But other
• Set up monthly payments if your account government guidelines do, so contact a tax
balance is at least $5,000 and your adviser.
beneficiary(ies) are at least age 55. Your
beneficiary(ies) can choose the monthly
flexible installment payment option or the SPOUSAL CONSENT
fixed-dollar installment payment option for Your spouse is your legal husband or wife. If
up to five years. Government guidelines apply. you’re married, your spouse must provide written,
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