Saving for retirement is easy when you participate in the 401(k) Retirement Plan.
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Upcoming change with 401(k) catch-up contributions
As part of the SECURE 2.0 Act, new retirement plan rules begin in 2026 that may impact employees age 50 and older who make catch-up contributions. If you are under 50 in 2026, you are not eligible for catch-up contributions, and this does not apply to you.
What's changing?
- If your FICA wages (Box 3 on your W-2) are greater than $150,000 in 2025 and you are age 50 or older in the 2026 calendar year and make catch-up contributions:
- The catch-up contributions must be made as Roth (after-tax).
- If your FICA wages are $150,000 or less in 2025 and you are age 50 or older and make catch-up contributions:
- You may choose to make your catch-up contributions as either pre-tax or Roth.
What action do I need to take?
- No action is required. Salem Health and Fidelity Investments will monitor eligibility and apply the new retirement rules — you do not need to track or adjust this manually.
- Changes begin in January 2026.
- Now is a great time to review your retirement strategy and talk with a financial or tax advisor about how Roth Catch-up contributions may impact your investment plan. Financial consultants with Fidelity are available and can schedule 1:1 meetings here.
- You can view or make changes to your contributions at any time by logging on to netbenefits.com. From the Quick Links drop-down menu, select Contribution Amount. Or go here to learn about changing contributions.
- Additional details are available in the Roth Catch-Up Participant Q and A Fact Sheet.
How the 401(k) Retirement Plan Works
June 2025, we announced the launch of Roth 401(k) option as part of your retirement benefits, giving you even more ways to plan for your financial future.
With this new feature, you’ll enjoy greater flexibility and control over how you save for retirement. Roth 401(k) contributions are made with after-tax dollars, meaning qualified withdrawals in retirement are tax-free!
And unlike a Roth IRA, there are no income limits to contribute through your 401(k) workplace plan.
You can view or make changes to your contributions at any time by logging on to netbenefits.com. From the Quick Links drop-down menu, select Contribution Amount. Or go here to learn about changing contributions.
The IRS limits the maximum amount you can contribute to your 401(k) each year, whether it’s a traditional pre-tax contribution, a Roth after-tax contribution, or a combination of both.
For 2026, the contribution limits are as follows:
- Up to $24,500 for individuals through age 49
- Up to $32,500 for individuals ages 50–59 and 64+
- Individuals who are ages 60–63 at any point during the 2026 tax year may contribute up to $35,750, due to an increased catch-up contribution limit
These limits apply across both traditional and Roth 401(k) contributions combined, not separately. You can choose how to split your contributions between the two options based on your financial planning goals.
Salem Health provides two types of contributions for enrolled participants:
- Matching contribution – qualify after one Year of Eligible Service and begin receiving contributions the first pay period after completing one Year of Eligible Service
- Experience contribution – for eligible participating employees (those who contribute 1% or more of salary), Salem Health will make an additional contribution based on your Years of Service in a benefit eligible position the pay period following that achievement.
Special rules apply if you have periods of broken service during your Year of Benefit Service.
Matching Contributions
| Matching contributions | ||||
|---|---|---|---|---|
| Your contribution | Salem Health contribution | Vesting | ||
| 1% of pay | 1% of pay | Always 100% vested | ||
| 2% of pay | 2% of pay | Always 100% vested | ||
| 3% of pay | 3% of pay | Always 100% vested | ||
| 4% of pay | 4% of pay | Always 100% vested | ||
Experience Contributions
Employees who have completed one year of service in a benefits-eligible position become eligible for experience contributions when eligible to participate in the 401(k) plan.
| Your years of Benefit Service | Salem Health will contribute |
|---|---|
| 1-4 years | 1.5% of pay |
| 5 -9 years | 2.5% of pay |
| 10 -14 years | 3.5% of pay |
| 15 years or more | 4.5% of pay |
| Vesting |
|---|
|
20% per year for 5 years |
Click to view the Live Web Workshop catalog and enroll for a live web workshop, or click to view the complete OnDemand catalog and watch workshops at your convenience.
Resources
- How to change 401k contributions
- Schedule an appointment with your Workplace Financial Consultants
- How to elect a Beneficiary
- Borrowing from Retirement: 3 Must-Knows
- Netbenefits App Flyer
- NetBenefits User Guide
- Retirement Rollover Contribution Form
- Roth 401K FAQ
- What’s the difference between pre-tax and Roth after-tax contributions?
- Sign up for a workshop anytime at: NetBenefits.Fidelity.com/livewebmeetings
FAQs for this Plan
There is no waiting period. You can enroll in the Plan at any time.
If you have not enrolled in the Plan within 35 days from your date of hire, you will be automatically enrolled in the Plan at a contribution rate of 5% of your pretax eligible compensation.
Based on your date of birth and assuming a retirement age of 65, you will be invested in the Vanguard Target Retirement Trust I, with a corresponding target retirement date. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
We encourage you to take an active role in the Plan and to choose a contribution rate and investment options that are appropriate for you. If you do not wish to contribute to the Plan, you must change your contribution rate to 0% within the first 35 calendar days of your eligibility. You may change your contribution rate at any time online, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
Enroll online at any time, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
Through automatic payroll deductions, you may contribute up to 70% of your eligible compensation as pretax and Roth contributions. Sign up online by accessing the “Contribution Amount” section under “Quick Links” on NetBenefits®, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement – as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth 401(k) contribution and after you have attained age 59½, or become disabled or die.
Find more information online within the “Plan & Learn” drop down and “Learn” section of NetBenefits®.
The IRS contribution limit for 2026 is $24,500 if you are age 49 or younger. Employees who will be age 50 or older during the year can contribute up to $32,500.
Starting in 2025, the SECURE 2.0 Act increases the limit for you if you have attained age 60, 61, 62, or 63 in a given calendar year. The limit for 2026 is $11,250.
Once you complete a year of service, Salem Health will match 100% of the first 4% you contribute on a pre-tax and Roth basis:
| If you contribute | Salem Health will match |
| 1% | 1% |
| 2% | 2% |
| 3% | 3% |
| 4% | 4% |
Salem Health will also contribute an Experience contribution to your account after you’ve completed one year of service in a benefits-eligible position, as long as you are contributing at least 1% to the 401(k) plan. These contributions are made based upon your years of service, as follows:
| Years of Benefit Service | Experience Contribution |
| 1 – 4 | 1.5% |
| 5 – 9 | 2.5% |
| 10 – 14 | 3.5% |
| 15 or more | 4.5% |
When you are “vested” in your savings, it effectively means the money is yours to retain. You are always 100% vested in all contributions you make to the Plan, plus any matching contributions made by Salem Health, as well as any earnings on them.
Salem Health’s Experience Contributions are subject to the following vesting schedule:
| Years of Service | Vesting Percentage |
| 0-1 | 0% |
| 1-2 | 20% |
| 2-3 | 40% |
| 3-4 | 60% |
| 4-5 | 80% |
| 5+ | 100% |
To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The many investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan’s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online.
We encourage you to take an active role in the Salem Health Retirement Plan and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the Vanguard Target Retirement Trust I with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65, at the direction of Salem Health.
If no date of birth or an invalid date of birth is on file at Fidelity, your contributions may be invested in the Vanguard Target Retirement Income Trust I. More information about the Vanguard Target Retirement Trust I options can be found online.
Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
Although your plan account is intended for the future, you may borrow from your account for any reason.
Learn more about and/or request a loan online, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
Withdrawals from the 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 your plan.
Learn more about and/or request a withdrawal online, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
You are permitted to roll over eligible pretax and Roth contributions from another 401(k) plan, 401(a) plan, 403(b) plan or a governmental 457(b) retirement plan account or eligible pretax contributions from another conduit individual retirement accounts (IRAs). A conduit IRA is one that contains only money rolled over from an employer-sponsored retirement plan that has not been mixed with regular IRA contributions.
Additional information can be obtained online, or by calling the Fidelity Retirement Benefits Line at 800-343-0860.
Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.
If you have not already selected your beneficiaries, or if you have experienced a life-changing event such as a marriage, divorce, birth of a child, or a death in the family, it’s time to consider your beneficiary designations. Fidelity’s Online Beneficiaries Service, offers a straightforward, convenient process that takes just minutes. To make your elections, click on the “Profile & Settings” icon in the upper right-hand corner, then select “Beneficiaries” and follow the online instructions.
