Northwell Health 401(k) match, vesting and fees

Participants are immediately vested in their contributions plus actual earnings. Employer basic contributions and employer matching contributions made on behalf of employees are subject to a six-year graded vesting schedule at a rate of 20% per year, commencing with the completion of two years of service.

The Plan provides all currently eligible hired (or rehired) employees (other than union members) automatic enrollment to the Plan following 90 days of employment at the rate of three percent (3%) of their eligible compensation, with such amount withheld from their eligible compensation and contributed to the Plan on their behalf as pre-tax salary reduction contributions, with such amount to increase annually by one percent (1%) on each subsequent January 1, until each such participant is making pre-tax salary reduction contributions in an amount equal to ten percent (10%) of his or her eligible compensation, unless any such participant affirmatively elects a different contribution percentage or elects not to contribute to the Plan. Participants who are not actively contributing at least three percent (3%) of their eligible compensation as of each January 1 of every even calendar year are also subject to automatic enrollment to the Plan on such date at the rate of three percent (3%) of their eligible compensation, unless any such participant affirmatively elects a different contribution percentage or elects not to contribute to the Plan.

Participants may make 401(k) or Roth contributions from 1% to 75% of their pretax annual compensation.

Loans to participants are limited to the lesser of (a) $50,000 reduced by the highest outstanding balance of loans from the Plan to the participant during the one-year period ending on the day before the date on which such loan is made, over the outstanding balance of loans from the Plan to the participant on the date on which such loan was made or (b) 50% of the dollar value of the loan recipient’s vested account balance. Loans shall provide for level amortization with payments to be made not less frequently than quarterly over a period not to exceed five years (thirty years if the loan is used to acquire a principal residence for the participant). Interest is determined at the time of the loan at a rate equal to prime plus 1%.