Page 5 - Allscripts Retirement Savings Plan

WITHDRAWALS
Your Retirement Plan is designed primarily to help you save for retirement; therefore, the IRS places restrictions on when money may be withdrawn from your Retirement Plan account. You may access your retirement savings under the following circumstances:
LOANS
• The maximum amount you may borrow is the lesser of 50% of your vested Retirement Plan account balance or $50,000, reduced by the highest outstanding loan balance over the last 12 months.
• The minimum loan amount is $1,000.
• You may have two outstanding loans.
• Loans must be repaid within 5 years for a general loan and up to 10 years if the money is used to purchase a primary residence.
• Loan repayments are deducted from your paycheck on an after-tax basis. Terminated participants may be permitted to continue to make loan payments directly to Schwab Retirement Plan Services, Inc.
• The interest rate on your loan will be the prime rate at the time you initiate the loan plus 1%.
• Each loan will be charged a one-time set-up fee of $75.
• All of your principal and interest loan payments are credited to your Retirement Plan account and are invested in the same manner as your regular contributions.
• After your loan request is received and approved, a check for the requested loan amount will be mailed to you in approximately four business days.
401(k) Loan Payments While on Leave of Absence
If you are taking a leave of absence or on military leave and you have outstanding loans in the Retirement Plan, you should be aware of this important information:
• Generally, a 401(k) loan will be considered to be in default if the loan goes beyond the cure period (end of the calendar quarter following the quarter in which the first payment was missed). An employee on a leave of absence may suspend 401(k) loan repayments for up to one year without the loan going into default. If a loan is in default, the loan will become taxable to the participant. If the participant is not eligible for a distribution from the Retirement Plan at the time of the default, the default will result in a deemed distribution. A deemed distribution is a taxable event and the participant will be taxed on the amount of the entire unpaid loan balance. A deemed distribution may be subject to the 10% additional tax on early distributions and other penalties.
In order to avoid a deemed distribution on your loan while you are on a leave of absence or as a result of taking a leave of absence or while you are on military leave, you have the following options:
• Contact Participant Services at 1-800-724-7526 and arrange to mail your loan repayment amount directly to Schwab Retirement Plan Services, Inc. while on leave (cashier’s check or money order accepted). Representatives are available Monday through Friday, between 7 a.m. and 11 p.m. ET.
• Upon return from leave, contact Participant Services at 1-800-724-7526 to arrange for multiple loan repayments to be taken through payroll to get caught up on the loan(s). If the loan is beyond the cure period, Schwab Retirement Plan Services, Inc. will re-amortize your loan plus the accrued interest for the time when payments were missed and then provide the new payment amount to Allscripts’ payroll.
• Upon return from leave, contact Participant Services at 1-800-724-7526 to determine how many payments were missed and submit payment directly to Schwab Retirement Plan Services, Inc. for the missed payments (cashier’s check or money order accepted). If the loan is beyond the cure period, the outstanding loan amount, plus the accrued interest for the time when payments were missed, will be amortized. The new payment amount will be provided to Allscripts’ payroll.
• Upon return from leave, contact Participant Services at 1-800-724-7526 to have your loan re-amortized for the time that you were on leave and payments were missed. The re-amortized loan will contain additional accrued interest for the time when payments were missed.
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