On your date of hire, you are automatically enrolled in the Plan at a pretax contribution rate of 4%. Your contributions will be invested in State Street Target Retirement Fund Class K. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

However, we encourage you to take an active role in the Plan and to choose a contribution rate and investment options that are appropriate for you. If you do not wish to contribute to the Plan, you must change your contribution rate to 0% within the first 90 days of eligibility. You may change your contribution rate at any time online, or by calling a Fidelity Retirement Service Center at 1-800-343-0860.

If you opt out of the Plan within 90 days, any contributions made to the Plan will be returned to you. Unwind of elective deferrals are returned to the participant adjusted for gains and or losses. The match is forfeited.

Your enrollment becomes effective once you elect a deferral percentage, which initiates deduction of your contributions from your pay. These salary deductions will generally begin with your next pay period after we receive your enrollment information, or as soon as administratively possible.

Through automatic payroll deductions, you may contribute between 1% and 60% of your eligible compensation as pretax contributions. Employees determined to be highly compensated may have additional limitations.
If you wish to contribute an amount other than 4%, you can change your deferral rate online by accessing the “Contribution Amount” section on NetBenefits^®, or by calling the Fidelity Retirement Service Center at 1-800-343-0860.

If you have reached age 50 or will reach 50 during the calendar year January 1 – December 31 and are making the maximum plan or IRS contribution, you may make an additional catch-up contribution each pay period. The maximum annual catch-up contribution is $7,500. Going forward, catch-up contribution limits will be subject to cost-of-living adjustments (COLAs) in $500 increments.

Starting in 2025, the SECURE 2.0 Act increases the limit for you if you have attained age 60, 61, 62, or 63 in a given calendar year. The limit for 2025 is $11,250.

The IRS contribution limit for 2025 is $23,500. This includes both pretax deferrals and Roth contributions.

The Plan helps your retirement savings grow by matching your contributions.

Novant Health, Inc will match 100% of each pretax and Roth dollar you contribute on the first 6% of pay that you defer to your plan.

Effective 1/1/2023, newly eligible team members will be eligible for the matching contribution on their date of hire. Currently employed team members that were under the previous 1-year waiting period, will become eligible for the Novant Health match beginning 1/1/2023. Match is contributed to the SSRP.

A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement - as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth 403(b) contribution and after you have attained age 59½, or become disabled or die. Through automatic payroll deduction, you can contribute between 1% and 60% of your eligible pay as designated Roth contributions, up to the annual IRS dollar limits.

Find more information online within the “Learn” section of NetBenefits^®.

Roth In-Plan Conversion options are available in the Plan. This option provides you with the opportunity to convert all, or a portion of your non-Roth assets to Roth assets. The amount eligible for such direct rollovers shall include all of a participant’s vested assets, including without limitation, pretax savings, after-tax savings, company contributions, and retirement contributions, as well as related earnings thereon.

Special tax rules apply to Roth In-Plan Conversion options and are an important consideration in determining whether to do such a conversion. Generally, the taxable amount of a conversion is determined as if the converted assets were distributed to you from the Plan, although the assets will only be transferred to the Roth portion of your account and no amount will actually be paid from the Plan. The taxable amount (determined as if actually distributed to you) is taxable to you in the year of the conversion and should be reported on your income tax return for that year. For more information related to the tax consequence of a conversion, you should consult your tax or financial advisor before undertaking such a conversion. You may contact the Fidelity Retirement Service Center at 1-800-343-0860 to process a Roth In-Plan Conversion.

You are always 100% vested in your own contributions to the TDSP, as well as any earnings on them. Novant Health, Inc's matching contributions and any earnings vest according to the following schedule: The match is added to the SSRP and is vested after 3 years of service.

Years	Percent
0-3	0%
3+	100%

To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The various investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan’s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online.

We encourage you to take an active role in the TDSP and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the State Street Target Retirement Fund Class K with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65, at the direction of Novant Health, Inc.

If no date of birth or an invalid date of birth is on file at Fidelity, your contributions may be invested in the State Street Target Retirement Fund Class K. More information about the State Street Target Retirement Fund Class K options can be found online.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

For those desiring the most investment flexibility and choice, the Plan offers Fidelity BrokerageLink^®, a self-directed brokerage account, which provides you with the opportunity to select from thousands of mutual funds beyond those offered in the standard plan lineup. More information about BrokerageLink^®, including an overview, the commission schedule, and a fact sheet that outlines the Plan-level restrictions and other settings, is available online at NetBenefits. Click on "Quick Links," then select "BrokerageLink."

Although your plan account is intended for the future, you may borrow from your account for any reason. One loan is allowed at a time.

Learn more about and/or request a loan online, or by calling the Fidelity Retirement Service Center at 1-800-343-0860.

Withdrawals from the Plan are generally permitted when you terminate your employment, retire, reach age 59½, become permanently disabled, or have severe financial hardship, as defined by your plan.

Learn more about and/or request a withdrawal online, or by calling the Fidelity Retirement Service Center at 1-800-343-0860.

You are permitted to roll over eligible pretax and Roth after-tax contributions from another 401(k) plan, 403(b) plan or a governmental 457(b) retirement plan account or eligible pretax contributions from individual retirement accounts (IRAs).

Additional information can be obtained online, or by calling the Fidelity Retirement Service Center at 1-800-343-0860.

Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

If you have not already selected your beneficiaries, or if you have experienced a life-changing event such as a marriage, divorce, birth of a child, or a death in the family, it’s time to consider your beneficiary designations. Fidelity’s Online Beneficiaries Service, offers a straightforward, convenient process that takes just minutes. To make your elections, click on the “Profile & Settings” icon in the upper right-hand corner, then select “Beneficiaries” and follow the online instructions.

Learn about loans, exchanges, and more online. In particular, you can access loan modeling tools that illustrate the potential impact of a loan on the long-term growth of your account. You will also find a withdrawal modeling tool, which shows the amount of federal income taxes and early withdrawal penalties you might pay, along with the amount of earnings you could potentially lose by taking a withdrawal. Additional information can be obtained by calling the Fidelity Retirement Service Center at 1-800-343-0860.

Plan administrative fees may include recordkeeping, legal, accounting, trustee, and other administrative fees and expenses associated with maintaining the Plan. A Recordkeeping Fee of $11.75 per quarter ($47 per year) will be charged on a quarterly basis to the accounts of all participants in the Plan. The $11.75 charge will appear on your quarterly statements. This recordkeeping fee is subject to change.