The OU Health 401(k) plan is an easy and tax-advantaged way to save money for retirement. OU Health helps your money grow with matching contributions and a broad range of investment options. There’s even a personalized planning and advice service from Fidelity^®. OU Health also offers 457 deferred compensation plans for those who qualify. Learn more about these retirement plans here.

401(k) Plan

Who is Eligible

You’re eligible for the 401(k) plan on your date of hire if you’re age 18 or older.* There is no waiting period to enroll.

*Members of a union are eligible only if their collective bargaining agreement provides for 401(k) plan participation.

Automatic Enrollment

Eligible new hires are automatically enrolled in the 401(k) plan after 10 days of employment, at a before-tax contribution rate of 3% of eligible pay. You can opt out or change the contribution rate at any time; just login to Fidelity NetBenefits.

Employee Contributions

You can contribute up to 75% of your eligible pay, subject to the annual Internal Revenue Service (IRS) limit. The limit is $23,500 for 2025, plus an extra “catch-up” contribution for those who reach age 50 or older in 2025. The 2025 catch-up contribution limit is $7,500 for those ages 50-59 and $11,250 for those ages 60-63. (If your 2025 wages exceed $145,000 in 2025, beginning in 2026 your catch-up contributions must be Roth after-tax contributions.)

You can increase, decrease, stop or restart contributions at any time; just login to NetBenefits. Your change will take one to two payroll cycles to go into effect, depending on when you submit the change.

Convenience

Your contributions are deposited into the plan through automatic paycheck deductions. This convenience helps you follow through on your savings goals.

Tax Advantages

You can use before-tax money and/or after-tax money to make your 401(k) plan contributions. Both types of contributions count toward the maximum annual IRS limit.

Saving before-tax or after-tax money depends on your personal financial situation and goals. Keep in mind:

Roth In-Plan Conversions

Annual Increase Program

The Annual Increase Program (AIP) gives you an easy way to increase your contributions over time. If you enroll in the AIP, your 401(k) contribution rate will automatically increase by 1% each January until you reach the maximum contribution rate (15%). You can opt in or out of the AIP at any time.

For more information and to enroll in the AIP:

Company Matching Contributions

OU Health matches 100%* of the first 6% of your eligible compensation that you contribute before-tax and/or Roth after-tax on a per pay period basis. 

If you do not make deferral contributions for a particular pay period or if you have reached the IRS annual contribution limit for the current year stopping your deferral contributions, you will not receive any matching contributions. 

To maximize the amount of matching contributions to your account, you should plan to contribute your deferral contributions equally throughout the year.

*dollar for dollar up to 6%

*Exceptions: Interns and temporary employees are not eligible for company matching contribution.

Vesting

“Vesting” refers to ownership of the money in your 401(k) accounts. You are always 100% vested in your own contributions (before tax, Roth after-tax and rollover). You become 100% vested in OU Health’s matching contributions after you complete two years of service.

You become 100% vested (regardless of your years of service) if you:

Additional vesting schedules: Some groups of employees have different types of 401(k) accounts that were merged with this 401(k) plan. Different vesting schedules may apply to some or all of those accounts. You can find more information in the 401(k) summary plan description, available on The Hub. Or go to NetBenefits to review your accounts.

Easy Online Beneficiary Designations

If you die without a 401(k) plan beneficiary designation in place, your vested 401(k) savings will go to your spouse if you are married; or to your estate if you are not married.

Keep your loved ones in mind. Fidelity’s online beneficiary designation service makes it fast and easy for you to:

If you are married and want to name someone other than your spouse as your primary beneficiary, your spouse must consent in writing.

Your Investment Options

You choose how to invest the money in all of your 401(k) plan accounts. The OU Health 401(k) plan offers a diverse range of options, from more conservative to more aggressive. Investment fees for these options are shared by all plan participants, based on each participant’s account balance and selected options.

The wide range of investment options makes it easy for you to choose a well-diversified investment portfolio based on your financial situation, investment risk tolerance and time horizon. Your time horizon is how long you have until you plan to use the money, usually in retirement.

For those who want additional options and/or more help, the 401(k) plan also offers:

To learn about all of the 401(k) plan investment options and services:

Recordkeeping

All 401(k) plan contributions and investment earnings are deposited into a trust fund. The plan’s assets are held in this trust to assure that the funds are used only to benefit plan participants and their beneficiaries.

Separate accounts are set up for each participant. Visit NetBenefits anytime to check your plan balance. For access to your 401(k) account on the go, download Fidelity’s NetBenefits app.

Distribution of Your 401(k) Savings

Distributions from the 401(k) plan are generally permitted when you terminate your employment, retire, reach age 59½, become permanently disabled or have a severe financial hardship as defined by IRS guidelines.

When you leave OU Health, you may withdraw all or any portion of your vested account balance. If your balance is more than $5,000, you may choose to keep your balance in the plan. However, administrative fees may apply. Your account balance will remain invested in the investment funds you select and will increase or decrease based on investment fund performance.

If you leave your money in the plan, you may elect to receive all or part of it at any time. However, the IRS requires you to begin receiving distributions by April 1 of the calendar year in which you reach age 73 (70½ if you were born before July 1, 1949).

Forms of Payment

You may choose one or a combination of these options.

Non-Rollover Distribution:

Direct Rollover Distribution:

Installment Distributions:

Purchase of an Annuity:

This option is available only if you have a vested balance in what is known as the “retirement contribution account” that transferred to the plan as part of the Hospital Corporation of America and affiliates (HCA) 401(k) plan merger. Your vested retirement contribution account will be paid to you as follows:

If you die before your retirement contribution account is paid to you, then 50% of the balance will be paid as a preretirement survivor annuity to your surviving spouse (unless that form of payment had already been waived by you with the consent of your spouse).

Access to Your 401(k) Savings Before You Leave OU Health

The main purpose of the 401(k) plan is to help you save for retirement. However, there are times when you can withdraw or borrow money from your plan accounts before you retire or leave OU Health. In-service withdrawals may be subject to income tax and withholding, including a 10% early withdrawal penalty. Be sure to consider all of your options (and talk to a tax advisor) before you take an in-service withdrawal or loan.

Hardship Withdrawal

If you have a certain type of immediate and heavy financial need, you may be able to take a hardship withdrawal from your before-tax or Roth after-tax account(s). IRS regulations require that you first use all other assets reasonably available to you before you can take a hardship withdrawal. The minimum hardship withdrawal is $1,000.

Examples of immediate and heavy financial needs that may qualify include:

After Age 59½

If you are at least 59½ years of age, you can withdraw all or a portion of your vested account balance, even if you are still working. No early withdrawal tax penalty will apply. Income taxes may apply, depending on what type of account the withdrawal came from.

After-Tax Contribution and Rollover Contribution Accounts

If you made after-tax contributions to the plan before 2021, that account is still held for you even though you can’t contribute to it any more. (Only “Roth” after-tax contributions can be made to the plan since Jan. 1, 2021.) You may withdraw all or a portion of that “frozen” after-tax account at any time.

If you have a rollover account, you can withdraw all or a portion of that account at any time.

In-Service Loans

You may be able to receive a loan from your vested account balance. Here are some of the details:

457(b) Plan

The OU Health Non-Qualified 457(b) Deferred Compensation Plan offers eligible employees a way to save more money for retirement, in addition to the 401(k) plan.

Who is Eligible

If you earn more than the Social Security Wage Base ($176,100 in 2025) or are in a select group of management, you are eligible to enroll in the 457(b) plan. You’ll be notified if you are eligible to contribute to this plan.

Employee Contributions

You can contribute eligible pay up to the annual IRS limit each year to the 457(b) plan, in addition to contributions you make to the 401(k) plan. The IRS contribution limit for 2025 is $23,500.

“Eligible pay” generally includes your base salary and wages that are subject to income tax withholding. It does not include any bonus payments, reimbursements, expense allowances, unused leave, back pay or deferred compensation. Refer to the 457(b) plan document (available from Human Resources) for a full list of exclusions.

Transfers to this plan: If you were a participant in an eligible tax-exempt plan before joining OU Health, you may be able to transfer that benefit to the OU Health 457(b) plan.

Recordkeeping

Your 457(b) contributions are credited to a plan account in your name on a before-tax basis. This means you defer tax on the amounts until you receive them from the plan.

OU Health has sole discretion in deciding whether to invest 457(b) plan assets. The company may also make one or more investment choices available to you. Any investment earnings or losses will be credited to your 457(b) account on a quarterly basis.

“Unfunded” status: Federal tax and employee benefit rules require the 457(b) plan to be “unfunded” in order to defer taxation of the amounts you contribute. All amounts credited to the plan must be part of OU Health’s general assets. If OU Health were to become insolvent, your 457(b) plan benefits would be subject to the claims of the company’s creditors, and you might lose part or all of your benefit.

Vesting

You are always 100% vested in the amounts credited to your 457(b) account.

Payment of Your 457(b) Plan Benefit

When you retire or leave OU Health, you will have 90 days to elect how and when you want your benefit paid to you.

Forms of Payment

You may choose any of the following forms of payment:

Tax withholding will apply to payments as required by applicable IRS rules.

When Payments Are Made

If you leave OU Health for any reason other than retirement, you will have 60 days from the date of your separation from service to elect when you want payments to begin. If you don’t make a timely election, or if your account balance is $5,000 or less, payment will automatically be made approximately 90 days following your separation from service.

Regardless of the above, IRS rules require that distribution of your benefit begin by the later of the following dates:

Age 73 Distributions Before Separation from Service

Transfer to Another Plan

If you separate from service and become a participant in an eligible tax-exempt plan that accepts transfers from a 457(b) pan, you may be able to transfer your benefit to that plan.

Payment Upon Your Death

If your death occurs:

457(f) Plan

OU Health provides 457(f) Deferred Compensation Plans for Physicians and eligible executives. These plans offer participants a source of future income with the advantage of deferring receipt of taxable compensation.

Who is Eligible

All Physicians and certain executives are eligible. Eligible executives include the President/CEO of OU Health and all executives who report directly to the President/CEO.

Employer Contributions

Recordkeeping

Each annual contribution is credited to a 457(f) account in your name during the first quarter of the following year. Separate sub-accounts are maintained to identify each contribution by year.

OU Health has sole discretion in deciding whether to invest plan assets. The company may also make one or more investment choices available to you. Any investment earnings or losses will be credited to your 457(f) sub-accounts.

You will receive an annual statement of the amounts credited to your sub-accounts as of Dec. 31.

“Unfunded” status: Federal tax and employee benefit rules require the 457(f) plan to be “unfunded” in order to defer taxation of the amounts contributed for you. This means that all amounts credited to the plan must be part of OU Health’s general assets. If OU Health were to become insolvent, your 457(f) plan benefits would be subject to the claims of the company’s creditors, and you might lose part or all of your benefit.

Vesting and payment of your 457(f) benefits: Refer to the plan document (available from Human Resources).

Beneficiary designation: It’s important to designate beneficiary(ies) for your 457(f) plan benefit. If you have not designated any beneficiary, payment will be made to your estate.

You will also want to keep your 457(f) plan beneficiary up to date. For example, let’s say you have named your spouse as your beneficiary. If you get divorced but do not change your beneficiary designation before you die, your former spouse will receive your 457(f) death benefit payment.

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