The Montefiore 403(b) Retirement Plan

The Montefiore 403(b) Retirement Plan administered by Fidelity helps you save for the future with flexible investment choices you control. You can change your contribution amount and investments any time and may be eligible to borrow or withdraw under certain conditions.

Pre-Tax Contributions

• Contributions are deducted before federal and most state income taxes (subject to Social Security taxes)
• Earnings grow tax-deferred until withdrawal
• Withdrawals before age 59½ may be subject to a 10% federal penalty
• You are always 100% vested in your contributions
• Contributions are deducted before taxes

Roth After-Tax Payroll Contributions

• Contributions are deducted after taxes
• Qualified withdrawals (age 59½ and account held for 5+ years) are tax-free
• Non-qualified withdrawals may be taxed on earnings and face penalties

Contribution Limits

• You can contribute up to 70% of your compensation between pre-tax and Roth options combined
• For 2026, it is projected that you can contribute up to $24,500, plus an additional $8,000 catch-up if you are or will reach ages 50 – 59 or over age 64 in 2026; we will provide updates on these numbers as they are made available by the Internal Revenue Service
• Special catch-up contributions of up to $11,500 are available for employees who are or will reach ages 60 – 63 in 2026

Mandatory Roth Catch-up Contribution for High Earners

• On January 1, 2026, a new rule takes effect regarding catch-up contributions for high-wage earners.
• If you earned over $145,000 in FICA wages in 2025, your catch-up contributions for 2026 must be made as Roth contributions (after-tax). This threshold is subject to indexing for inflation in future years.
• Employees earning $145,000 or less in 2025 have the option to make their catch-up contributions as pre-tax or Roth.