Glossary of Terms
A 401(k) is a retirement savings plan sponsored by an employer. It allows you to save and invest a portion of your paycheck before taxes are taken out. Taxes are not paid until the money is withdrawn from the account.
A contribution form is a form sent to HCA participants by the RCH counselor when rolling other qualified and accepted plans into the HCA 401(k) Plan. The purpose of the form is to acknowledge that you are rolling funds into the plan and allows you to make your investment choices. As an HCA participant, you only need to sign it and return it to your counselor.
A distribution form is sometimes required by your prior employer’s plan to rollover your 401(k). If your former plan requires a distribution form, your RCH counselor will pre-fill the form for you, and send it to you for your signature.
A letter of acceptance is a formal letter stating that the receiving plan will accept the transferred funds from the distributing plan. This is most often required when transferring an IRA to the HCA 401(k) Plan.
A Letter of Determination is a document issued by the IRS to the plan sponsor of a 401(k) plan. It indicates that the plan meets legal requirements, complies with the relevant sections of the Internal Revenue Code and is “qualified” meaning that is qualifies for special tax treatment. This is one of many means that RCH uses to qualify an incoming rollover from another plan.
A Mutual fund is an investment security that enables investors to pool their money together into one professionally managed investment. Mutual funds can invest in stocks, bonds, cash or a combination of those assets. HCA has 19 mutual funds to choose from.
A Medallion Signature guarantee is a special signature guarantee for the transfer of funds. It is a guarantee by the transferring financial institution that the signature is genuine and the financial institution accepts liability for any forgery. Some custodians require this of the participant to process a distribution.
Notarization is the official fraud-deterrent process that assures the parties of a transaction that a document is authentic and can be trusted. Some custodians require this of the participant to process a distribution.
A plan administrator is the person or company your employer selects to manage its retirement savings plan. The administrator works with the plan provider to ensure that the plan meets government regulations.
A Roth IRA is a special retirement account that you fund with after-tax income. Contributions you make to a Roth IRA are not deductible, but Roth distributions can be tax-free if certain rules are followed. The HCA 401(k) Plan does not accept transfers from Roth IRAs.
Is a way to save for retirement that gives you tax advantages. Contributions you make to a traditional IRA may be fully or partially deductible depending on your circumstances. The HCA 401(k) Plan accepts transfers from traditional IRAs.
