Account
An account maintained for the benefit of a participant in a retirement plan.
Account Statement
A quarterly summary of the 401(k) account, including the value of the account at the end of each calendar quarter, recent transactions, and how the account is invested in the various plan investment options.
Auto Enrollment
A method of enrolling all eligible colleagues in the 401(k) Plan at an initial contribution rate of 3% of eligible pay without requiring colleagues to submit a request to participate. Plan design specifies how these automatic deferrals are invested. Colleagues who do not want to make deferrals to the 401(k) plan must actively opt-out. Participants can change the amount of pay that is deferred and how it is invested
Auto Escalation
A plan feature which automatically increases the percentage of pre-tax savings from salary. The rate will automatically increase by 1% (up to a maximum of 15%) in January of each year.
Beneficiary
A person entitled to receive a share of a deceased participant’s interest in an account under the plan.
Catch-Up Contribution
An additional voluntary contribution that a participant who is 50 years of age or older may make into the 401(k) Plan. Catch-up contributions may be subject to cost-of-living adjustments. For 2024, the catch-up amount is $7,500.
Compensation
Wages and all other payments to an employee by the employer for services rendered to the employer during the course of employment. Plan compensation may include all or only a portion of such compensation and is defined in the HCA Healthcare 401(k) Summary Plan Description.
Default
A failure to repay a plan loan in accordance with the provisions specified in the Summary Plan Document. The document must identify the events that constitute the failure and the parameters for any grace period.
Default Investment Alternative
A specific investment identified as the investment vehicle in which participant accounts shall be invested if no investment instructions are provided by the participant. The default investment for HCA Healthcare’s 401(k) Plan is the Pre-Mixed 25-To-Go Fund.
Direct Rollover
A tax-deferred transfer of assets from one qualified retirement plan to another qualified retirement plan or IRA. The transfer is made without any funds being sent directly to the plan participant.
Distributions and Withdrawals
When money is withdrawn from the 401(k) Plan, the withdrawal is referred to as a distribution. 401(k) plan assets can be withdrawn without penalty after age 59 ½. Colleagues are required to begin taking distributions after age 70 ½ unless they are still actively employed by HCA Healthcare.
Diversification
The practice of spreading risk by investing in a number of securities that have different return patterns over time. When one investment is yielding a low or negative rate of return in a diversified portfolio, another investment may be enjoying positive or above-normal returns.
Eligibility
Eligibility determines who can participate in the 401(k) Plan and when they can participate. Colleagues over age 18 and over are eligible to participate on the first day of the month after completion of two consecutive months of service.
Employer Matching Contribution
The amount HCA Healthcare contributes to the colleagues’ 401(k) account.
Forfeiture
The portion of a colleague’s account balance (the HCA Healthcare matching account) that is lost because it is not vested when the employee terminates employment.
Frozen Plan
A 401(k) plan under which accruals and/or contributions have ceased but assets are still held for participants and beneficiaries.
Grandfathered
A grandfather clause (or grandfather policy or grandfathering) is a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases. Those exempt from the new rule are said to have grandfather rights or acquired rights, or to have been grandfathered in.
Hardship Withdrawal
An in-service distribution from the plan which is made because the participant has suffered severe financial difficulty, or an extraordinary event as defined by the Summary Plan Description. Financial hardships are defined by federal income tax regulations and can only be requested after attempting to satisfy the need by borrowing the maximum amount available through a plan loan or other readily available financial resources.
Loan
Participants may take loans from their 401(k) account for any reason; however, they are subject to approval. There are loan fees and conditions to be considered before borrowing from a 401(k) plan, including defaulting on the loan which would cause a taxable distribution.
Lump Sum
The distribution, in a single payment, of a participant's entire vested accrued benefit under the plan (or what remains of the participant's vested benefit at the time of the single-sum distribution).
Matching Contribution
The amount (as a percentage) HCA Healthcare contributes to a colleague’s 401(k) account. Please refer to the Summary Plan Description for details concerning the matching formula and eligibility.
Normal Retirement Age
The age participants become fully vested in all benefits under the 401(k) Plan. HCA Healthcare’s colleagues become fully vested at age 65 and if they choose to retire at that age or later, they may receive a full distribution of their account.
Participant
An eligible employee who is covered by a retirement plan.
Participant Account
The account established and maintained for each participant with respect to such participant’s total interest under the plan. Plan assets may include voluntary and matching contributions, rollovers, transfers, and earnings.
Payout Options
Any of the forms of distribution or options for benefit payments that may be available established in the terms of the Summary Plan Description.
Period of Severance
A continuous period of time during which a colleague is not employed by HCA Healthcare. It is generally only pertinent when a former colleague is rehired.
Plan
The plan identified as the HCA Healthcare 401(k) Plan.
Plan Trust and Trustee
Assets of the Plan are held in a trust. Once a contribution is made to a participant’s plan account, the money is paid to the trust fund, where it is invested and held by the trustees.
Portability
This occurs when, upon termination of employment, a colleague transfers 401(k) funds from one employer's plan to another without penalty.
Qualified Domestic Relations Order (“QDRO”)
A QDRO is a domestic relations order, made pursuant to a state domestic relations law, that provides for the payment of all or a portion of the participant’s benefits to a spouse, former spouse, child, or other dependent (“alternate payee”) relating to child support, alimony payments, or marital property rights.
Retired Participant
A plan participant who has met the plan qualifications for retirement benefits and has retired.
Retirement Date
The date as of which a participant retires.
Rollover
A participant’s transfer of retirement funds from one retirement plan to another plan of the same type or to an IRA without incurring a tax liability. The transfer must be made within 60 days of receiving a cash distribution. The law requires 20 percent federal income tax withholding on money eligible for rollover if it is not moved directly to the second plan or an investment company.
Summary Plan Description (SPD)
The SPD is a detailed guide to the benefits the 401(k) Plan provides and how the plan works.
Vesting
The period of time a colleague must work at HCA Healthcare before gaining access to matching contributions. Participant voluntary contributions are immediately vested.
Vested
The non-forfeitable portion of any account maintained on behalf of a participant in a retirement plan.
Year of Service
Year of Service is a term defined in the Summary Plan Description. It describes the period of time and the method for measuring service. The result of the measured service generally determines when a colleague is eligible to participate in the Plan.
For More Information About the 401(k) Plan
Go to HCAhrAnswers.com, click HCA Rewards, and select BConnected, or call (800) 566-4114.
(If your facility does not use HCAhrAnswers: Go to Atlas Connect (https://connect.medcity.net) while on the HCA Healthcare network and click HCA Benefits & Rewards. If your facility does not use Atlas Connect, log onto HCArewards.com.)
Remotiv is not affiliated with HCA Healthcare and is a private company hired to provide independent investment education. All responses are intended to be educational in nature and should not be considered advice.