What You Need To Know About Your Cleveland Clinic Retirement Savings Options
The Cleveland Clinic offers multiple opportunities for employees to save and invest for their retirement. This article will provide a brief overview of the plans available to you as an employee and some options that may allow you to maximize your benefits.
The Cleveland Clinic Savings and Investment Plan (SIP)
The Cleveland Clinic Savings and Investment Plan (SIP) offers both pre-tax and Roth options. The plan includes an auto-enroll feature. Unless a specific election is made not to enroll, an eligible participant will be automatically enrolled at a contribution rate of 3%. Employees may contribute from 1% to 75% (up to the IRS limit). Investments are self-directed and participants can manage their investment accounts through the Fidelity BrokerageLink® portal. Participants who utilize Fidelity BrokerageLink® have access to additional investment options beyond those available in the core plan lineup. The Cleveland Clinic will match 50% of the first 6% of employee contributions, but the matching amounts are not vested until the employee completes three years of service.
The Cleveland Clinic Investment Pension Plan (IPP)
The Cleveland Clinic Investment Pension Plan (IPP) is funded by contributions from the employer. The IPP is automatically set up for eligible employees on the first day of employment. Contribution amounts are based on years of service, and all contributions and earnings become vested after three years of service. Investments are self-directed.
The Cleveland Clinic Foundation Cash Balance Plan
The Cleveland Clinic Foundation Cash Balance Plan is available to substantially all staff and senior exempt management employees. Contributions to the plan, based upon the plan participant's age, are made by the Cleveland Clinic, and represent up to 7% of the participant's annual salary. Like the SIP, investments are self-directed, and additional investment options are available to participants who utilize Fidelity BrokerageLink®. Benefits are fully vested after three years of service.
The Cleveland Clinic 457(b) Plan
The Cleveland Clinic 457(b) Plan is available only to certain highly compensated employees. This type of plan is usually most advantageous to employees who expect to exceed the maximum contribution levels of other retirement plans. Employees can make pre-tax contributions up to the IRS limit ($22,500 in 2023). All investments are self-directed.
Equity Accumulation
The Equity Accumulation plan offers highly compensated employees a way to receive cash compensation in lieu of employer contributions to retirement plans. Amounts paid under this plan represent amounts that cannot be deposited into an individual participant's account due to IRS limits on covered earnings. Participants receive payments in addition to contributions to the Cleveland Clinic Foundation Cash Balance Plan and the SIP. Employees must have contributed 6% of IRS covered earnings to the SIP to qualify.
In-Plan Conversion Feature
The Cleveland Clinic's retirement plans offer an in-plan conversion feature, which allows participants to contribute after-tax dollars to their plans and then convert the contributions into "Roth dollars." By utilizing this approach, some employees can take full advantage of contributions to their plans up to the annual limit (for 2023, the maximum is $66,000, or $73,500 including catch-up contributions for employees age 50 or older.
How We Can Help
Whether you’re just beginning your career, or approaching retirement, the choices you make are extremely important to your future and should not be taken lightly. Schedule your no cost retirement account review here. This will be a 30 minute review of your investment selection and allocation and an opportunity to ask questions and access our knowledge cultivated over a quarter century of experience working in the financial and retirement planning industry. For more information about LakePointe Advisors, please look over these Frequently Asked Questions.
About Sal D’Angelo
I am the founder and President of LakePointe Advisors LLC, a Northeast Ohio based financial solutions firm. I am a trusted advisor to entrepreneurs, physicians, and other healthcare professionals. I provide the experience and advice to help people build and protect their wealth, reduce their taxes, and build a secure future for themselves and those they care about.
I am a lifelong resident of Northeast Ohio. My wife and I are proud parents to three grown children. When not working, I enjoy sports, especially football and golf, and spending time with family and friends.
The information used to write this article was obtained from readily available, on-line plan information. This article is an overview designed to provide basic information, not specific advice, or recommendations. It is also not a complete description of every plan offered by the Cleveland Clinic. For a summary plan description of all plans offered, contact your benefits department. LakePointe Advisors is not endorsed by the Cleveland Clinic.
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