Plan highlights

TDA Program

ELIGIBILITY AND ENROLLMENT

You are immediately eligible to participate and may enroll at any time.

CONTRIBUTION AMOUNTS¹

• Contributions made to the TDA program through New York City Health + Hospitals are deducted from the gross pay. However, for participants contributing to NYCERs, their pay is first reduced by the amount of pay contributed to NYCERS (gross pay – pension contribution).
• Up to 70% of your gross pay, not to exceed the annual limit ($22,500 in 2023). Amounts contributed to a 403(b) program and a 401(k) must be coordinated.
• You may also contribute an additional amount above the plan and federal limits ($7,500 in 2023) if you will be age 50 or older by Dec. 31, 2023
• You may be eligible to make a 15-year catch-up contribution of up to $3,000 per year, with a $15,000 lifetime maximum.

Flexible ways to contribute

• Traditional before-tax contributions are automatically deducted from your paycheck before current federal taxes are taken out. As a result, your take-home pay is not impacted by the full amount of your contribution. Additionally, these contributions grow tax-deferred until withdrawal.
• Roth contributions are automatically deducted from your paycheck after taxes are paid and, therefore, reduce your take-home pay by the full amount of your contribution. Roth contributions and potential earnings grow tax-deferred until withdrawal. Potential earnings on Roth contributions may be distributed federal tax-free in retirement if you meet certain requirements.
• The TDA accepts rollover assets from other employers’ eligible retirement plans. Rollover assets may be assessed fees or other surrender charges. Please contact your current account provider for more information.

Contribution Accelerator feature

Employees in the TDA have access to Contribution Accelerator, a retirement planning feature that can help you save more for retirement. It is available at no additional cost, and you can opt out at any time. Once you sign up for this feature, your contribution amount will automatically increase by 1% each year, up to a maximum of 15% (per source). It’s never been easier to systematically increase the amount you set aside for retirement.

VESTING

You are always 100% vested in your own contributions without risk of forfeiture.

FREQUENCY OF CHANGES

At any time, you can:

• Make changes in your contribution rate or future allocations
• Make exchanges of your account balances (please note restrictions on GIA transfers)
• Stop contributing

INVESTMENT OPTIONS²

The plan offers various investment options. You decide where your and your employer's plan contributions should be allocated. Complete information about all the plan's investment options is available on the Investments page of this website.

GOALMAKER

The TDA Program offers a variety of investments that help you create a well-diversified portfolio. Or, if you’d prefer a little more help, there’s GoalMaker^®. GoalMaker is designed to help you choose investments that meet your individual needs and circumstances. At no additional cost to you, GoalMaker simplifies the investment choice process, and automatically rebalances your investments on a quarterly basis. It can also adjust to account for the time that you have until retirement. For more information on GoalMaker, please view this brochurePDF File opens in a new window.

PRUDENTIAL GUARANTEED INTEREST ACCOUNT (GIA) INFORMATION³

• Unrestricted amounts of money may be exchanged from the GIA to any other Prudential investment option except “competing” funds. The money must remain invested in a non-competing fund for at least 90 days before being exchanged to competing funds or back to the GIA. Competing funds are generally those that seek to provide safety of principal and/or invest in high-quality fixed-income securities. Competing funds include, but are not limited to, money market funds, short-term bond funds and stable value options.
• Disbursements are taken proportionately from each portion of your GIA to which a different interest rate may apply.
• You are always guaranteed to receive 100% of the contributions allocated to the GIA.

ACCESS TO FUNDS WHILE EMPLOYED

Loans⁴

• You may borrow up to 50% of your vested account balance, not to exceed $50,000 in a 12-month period (reduced by the highest outstanding loan balance in the past 12 months)
• Minimum loan: $1,000
• Interest rate: Prime + 2% (loan interest is paid back to your account)
• Loan initiation fee: $75, deducted from your account at the time your loan is processed
• Repayment period: One to five years. Up to 30 years for a home loan; a copy of the signed purchase agreement must be submitted with the loan application. If married, notarized spousal consent is required
• Repayment method: payroll deduction
• Number of loans permitted at one time: one
• Tax consequences: None, as long as the loan is repaid in full
• Prepayment available: Yes

Any outstanding loan balance not paid back under plan rules after termination of employment becomes taxable in the year of default. Under the Tax Cuts and Jobs Act, for defaults related to termination of employment after 2017, the individual has until the due date of that year’s return (including extensions) to roll over the outstanding loan amount to an IRA or qualified employer plan.

For more information on loans, please view this brochurePDF File opens in a new window.

Hardship Withdrawals

You must meet one or more of the following to qualify for a hardship withdrawal:

• Unreimbursed major medical expenses
• Purchase of a primary residence
• Payment to prevent eviction from your primary residence
• Payment for higher education
• Payments for burial or funeral expenses for a deceased parent, spouse, child or dependent
• Expenses for the repair of damage to your primary residence that would qualify for the casualty loss deduction allowed by Section 165 of the Internal Revenue Code

Any outstanding loan balance not paid back at termination becomes taxable in the year of default.⁵
Taxes and early withdrawal penalties may apply.
Amounts withdrawn are subject to income taxes. Withdrawals before age 59 may also be subject to a 10% federal income tax penalty and plan restrictions. Neither Empower nor any of its affiliates provide tax or legal advice for which you should consult your qualified professional.

Prior Service Buyback

You may also be eligible to transfer money from your TDA account to your pension account at NYCERS in order to purchase service credit under NYCERS. For more information or to determine if you are eligible, contact Empower toll-free at 855-444-2832.

DISTRIBUTION OPTIONS AT TERMINATION⁶

• Leave your funds in the plan (subject to federal rules on Required Minimum Distributions)
• Take a full or partial lump-sum distribution
• Roll over your vested balance to an Individual Retirement Account (IRA) or other eligible retirement plan
• Purchase an annuity

For more information about your distribution options, please view this brochurePDF File opens in a new window.

DISABILITY OPTIONS

Provided you meet federal requirements, you may take:

• Systematic withdrawals
• A lump-sum distribution

All payments are subject to taxes but no penalties.

TAXES THAT APPLY TO DISTRIBUTIONS

• You usually pay taxes at your current income tax rate for the year in which you receive the money.
• Withholding for federal income tax is automatically deducted (mandatory 20%) from the withdrawals paid directly to you (with certain limited exceptions).
• A 10% federal income tax penalty may apply for any withdrawals made before age 59½.
• Hardship withdrawals are subject to voluntary 10% federal income tax withholding.

Empower and its representatives are not tax or legal advisors. Consult your own legal or tax advisor with specific questions.

IN THE EVENT OF DEATH

Your account balance is paid to your beneficiaries, and they are responsible for all taxes.

DEDICATED REPRESENTATIVES

Your plan offers dedicated TDA Education Representatives that can provide you with one-on-one assistance. For information on your Education Representatives, or to set up an appointment, visit the Personal assistance page.