There is no waiting period. You can enroll in the 401(k) and 457(b) Plans after receiving your first SMUD paycheck.

Enroll online at any time, or by calling the Fidelity Retirement Service Center at 1-800-343-0860.

Your enrollment becomes effective once you elect a deferral percentage or a flat dollar amount, 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 up to 100% of your eligible compensation as pretax contributions.

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.

A 457(b) Plan participant may be eligible during one or more of the last 3 years before normal retirement age. You can only use the 457 "last 3 years" catch-up. The otherwise applicable contribution limit may be increased to up to twice that amount. Eligibility is dependent upon your underutilized amount and will be calculated by the Plan Sponsor.

You may defer $23,500 to both the 401(k) and 457(b) Plans, the maximum IRS limit in 2025, which applies to all employee and employer contributions in all 401(k) and 457(b) Plans in which you participate.

You are always 100% vested in your voluntary and matching contributions to the SMUD 401(k) and 457(b) Plans.

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 many 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 SMUD 401(k) and 457(b) Plans 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 RITC Fund 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 Sacramento Municipal Utility District.

If no date of birth or an invalid date of birth is on file at Fidelity, your contributions may be invested in the RITC Retirement Fund. More information about the RITC Fund 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.

Fidelity^® Personalized Planning & Advice ("The Service")
Fidelity^® Personalized Planning & Advice is a retirement goal based managed account service with a team of portfolio managers who manage the investments in your workplace savings plan account. Based on your unique needs and goals, our team of professionals will create a plan that considers your total financial situation, put the plan into action, and work for you putting in the time, resources, and knowledge needed to keep you on track for retirement.

This includes:

• Regularly monitoring and rebalancing of your account
  
• Strategy refinement that supports you as your financial situation evolves
  
• Quarterly check-ins, which include your progress toward key milestones
  
• Personal planning dashboard that includes progress to retirement and other profile details

To see if Personalized Planning & Advice is right for you, talk to one of our financial representatives at 866-811-6041.

Although your Plan account is intended for the future, you may borrow from your account for any reason. Generally, the SMUD 401(k) and 457(b) Plans allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $1,000, and a loan must not exceed $50,000. You then pay the money back into your account, plus interest, through after-tax payroll deductions. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. You may have two loans outstanding at a time. The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees will be deducted directly from your individual plan account. If you fail to repay your loan (based on the original terms of the loan), it will be considered in “default” and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal penalty. Defaulted loans may also impact your eligibility to request additional loans. Be sure you understand the Plan guidelines and impact of taking a loan before you initiate a loan from your Plan account.

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 Plans are generally permitted when you terminate your employment, retire, have an unforeseeable emergency, as defined by your plan. You may also take a withdrawal from your 401(k) Plan at age 59½.

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 contributions from another 401(k) or governmental 457(b) Plan account or eligible pretax contributions from another conduit IRA and non-conduit IRA. A conduit IRA is one that contains only money rolled over from an employer-sponsored retirement plan that has not been mixed with regular IRA contributions.

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, accounting, trustee, and other administrative fees and expenses associated with maintaining the Plans. SMUD has a flat fee structure to cover these costs.

Recordkeeping Fee Per Plan:

• $51 per Participant per year, billed and payable quarterly. The annual per Participant fee is assessed on each Plan.
  

Please keep in mind that fees are subject to change.

As you review this information, please keep in mind that fees are subject to change and that certain Plan administrative fees may not be deducted from accounts in certain circumstances. The Plan administrative fees and expenses will be shown on a separate line on your quarterly statement. Account balances are evaluated and applicable plan administrative fees will be assessed on a quarterly basis per Plan. If any Plan administrative fees are actually deducted from your account, they will be reflected on your plan’s account statement in the Administrative Fees line item. Please keep in mind that fees are subject to change.

Individual fees and expenses include those associated with a service or transaction that an individual may select. In some instances, they may be deducted from the accounts of those individuals who utilize the service or engage in the transaction.

If you have an account in the Plan and you select or execute one or more of the following services or transactions, the following fees may be deducted from your account based on the information and direction Fidelity had at the time this notice was prepared. As you review this information, please keep in mind that fees are subject to change and that certain individual fees may not be deducted in certain circumstances.

• Loan Setup Fee: $50 per loan transaction
• Loan Maintenance Fee: $6.25 quarterly
• Overnight Mailing Fee: $25 per transaction

If any individual fees are actually deducted from your account, they will be reflected on your Plan’s account statement.