LCMC 403(b) Retirement Plan Update

The Retirement Plan has added new Roth provisions as well as 2 new investment fund options. 

Roth Provisions: 

Roth After-Tax Contributions: 
Participants may contribute Roth after-tax contributions to their plan account.  With Roth contributions, the dollars going into the plan have already been taxed, thus, no tax when withdrawn at retirement. Earnings of Roth contributions are tax-free when withdrawn at retirement when held for 5 years or more.

Roth In-Plan Conversions:
This provision allows you to elect to change the tax treatment of all or a portion of your pre-tax account.  Participants may transfer vested, pre-tax contribution in their account to a Roth after-tax contribution account within the retirement plan. Please note - a conversion will result in taxable income being reported to the participant.

New Investment Fund Options:

Eaton Vance Floating Rate Fund – a Floating rate bond fund
The funds investment objective is to provide a high level of current income. Under normal circumstances, the Fund invests at least 80% of its total assets in income producing floating rate loans and other floating rate debt securities. The Fund invests primarily in senior floating rate loans of domestic and foreign borrowers.  The interest rate on these loans “floats” so this may be a good investment in a rising interest rate environment.

Eventide Gilead – a Mid-cap Growth fund
This fund seeks to provide long-term capital appreciation. Normally, the Gilead Fund invests primarily in a broad range of equity securities without limitation to market capitalization. The Advisor seeks to invest in companies that reflect the following values:
  • Respecting the value and freedom of all people; this includes the right to life at all stages and freedom from addictive behaviors caused by gambling, pornography, tobacco and alcohol.
  • Demonstrating a concern for justice and peace through fair and ethical relationships with customers, suppliers and business partners and through avoidance of products and services that promote weapons production and proliferation.
  • Promoting family and community; this includes protecting children from violent forms of entertainment and also includes serving low income communities.
  • Exhibiting responsible management practices, including fair-dealing with employees, communities, competitors, suppliers and customers as demonstrated by a company’s record regarding litigation, regulatory actions against the company and its record of promoting products and services that improve the lives of people.
  • Practicing environmental stewardship
Have questions about the plan?  Click here to learn more. 

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