A: The contribution limit for 2023 is $22,500. If you are 50-years-old or older, the annual limit is $30,000. This changes regularly based on IRS guidelines.

Fees and Expenses

Vista 401(k) Plan Expenses are as follows:

• Overall Management- A “wrap” fee of 57.5 basis points, or 0.575% of assets, is assessed from your asset balances and paid to FBMC.
• Administration – $1.00 per month is assessed to participants no longer actively contributing to their 401(k) account
• Mutual Fund – There are investment fees that are different for each fund as described in their prospectus. A detailed summary is available at www.vista401k.com.
• $20 fee for all distributions.
• $20 fee if you select Rapid Mail. Rapid Mail ensures check delivery in 3-5 business days. Otherwise, delivery will take 7-10 business days.
• Front-end or loading charge – none.
• Surrender charge – none.
• Fees and/or restrictions on transferring plan assets between funds – none.
• Other charges – none.

Restrictions on Plan Distributions

Your 401(k) account is a long-term investment, designed specifically for your retirement needs. Because of this, the IRS restricts when you can withdraw your money. You are able to withdraw your money when you reach age 59½, retire, terminate employment, become totally and permanently disabled, or have a financial hardship (see Hardship Withdrawal Provisions). Federal law imposes these limitations.

Taxes on Distributions

You pay taxes on your Vista 401(k) plan contributions and your earnings when you withdraw them. If a check is written to you, your distribution will have 20% federal income tax withheld. If you want to avoid paying taxes on your withdrawal, you may do a direct rollover to an IRA or your new employer’s 401(k) plan.

An additional 10% penalty tax will be imposed for distributions made before the age of 59½ except for the following circumstances:

• Distributions if you have reached age 55 and retired early.
• Hardship distributions.
• Distributions to an alternate payee under a qualified domestic relations order, issued by the court in the divorce or dissolution of marriage proceeding.
• Distributions made due to an employee’s death or disability.
• A direct rollover to another qualified plan.
• Purchase of service credits for a Defined Benefit Plan.

Loans

Your 401(k) plan has a loan provision to give you access to your money. The following rules apply:

• You must have a minimum of $2,000 in your account.
• You can borrow up to 50% of your account balance, with a maximum of $50,000.
• The minimum loan amount is $1,000.
• You have a choice of paying your loan back, with interest, in 1,2,3,4 or 5 years.
• You pay back your loan through equal payroll deductions.
• There are no penalties if you prepay your loan, but if you want to pay it off early, you must pay it off in one lump sum.
• You can only have one loan at a time.
• The interest rate will be 2% over the prime rate.
• Your total payment (principal and interest) will be deposited back into your account.
• There is a thirty (30) day waiting period after you repay a loan before you can take out a new loan.
• There is an $85 fee for loan processing, which includes State of Florida Documentary Stamp payment.

Hardship Withdrawal Provisions

You must meet specific criteria to qualify for a financial hardship. The IRS allows the following six reasons for hardship withdrawal of your 401(k) funds. The withdrawal cannot exceed the cost of your hardship. ($1,000.00 minimum)

• Purchase of a primary residence (excluding mortgage payments).
• Tuition expenses and related educational fees for you or your dependent’s next 12 months of post-secondary education.
• Expenses incurred by you or your dependents to obtain medical services.
• Payments to prevent eviction or foreclosure on your primary residence.
• Payments for burial or funeral expenses for the employee’s deceased parent, spouse, children or dependents.
• Expenses for the repair of damage to the employee’s principal residence that qualifies for the casualty deduction.

You must complete a hardship withdrawal application that details your financial situation and provide written documentation for all eligible expenses.

Rollovers

You may rollover, on a tax-free exchange basis, funds from a previous employer’s 401(a), 401(k), 403(b), 457, DROP or IRA plans into your 401(k) Plan.

Call Vista 401(k) toll-free at 1-866-325-1278 for information.