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INTRODUCTIONContributionsto Your AccountSECTION 1:Funding MediumNAMING A BENEFICIARYPlan assets are held in a trust maintained by the Trustee.The assets of the trust are not commingled with Baylorassets and are held exclusively to pay benefits andexpenses. The Trustee is responsible for assets held intrust Accounts by the Plan.When you enroll in the Plan, you must name a beneficiaryto receive your Account balance if you die beforereceiving your entire vested Account. If you are married,federal law requires that your Spouse be your beneficiaryunless your Spouse consents in writing to anotherbeneficiary. Your Spouse’s written consent must bewitnessed by a notary public.TrusteeGreat-West Trust Company, LLC8515 East Orchard RoadGreenwood Village, CO 80111www.greatwesttrustco.comAgent for Service of Legal ProcessLegal process may be served on the Plan Administrator/Sponsor at the address listed above.PARTICIPATING IN THE PLANSIf you need assistance accessing your account, call anEmpower Retirement Participant Service Representative at1-844-722-BSWH (2794), Monday – Friday, between8:00 a.m. and 7:00 p.m.PlanWithdrawalsPlanLoansSECTION 4:After you are hired, we encourage you to beginparticipating in the Plan as soon as possible after your firstday of employment.To access your account online for the first time, visitwww.BSWHretirement.com and select the REGISTERbutton. Select the ‘I do not have a PIN’ tab and follow theprompts. The website will guide you through the accountregistration process. The next time you access youraccount, choose ‘Login’.If you have an email address on file, you will receive anemail confirming that your enrollment request has beenreceived. Your Plan contributions will be deducted from yourpaycheck as soon as administratively possible after youenroll. Depending on when you submit your enrollment, yourdeductions will typically be reflected on your next regularpaycheck or the following paycheck. In some instances, abanking or nationally recognized holiday or unforeseeableevent may delay the processing of your election.Baylor Scott & White Health 401(k) Savings Plan Summary Plan DecriptionOther PlanDetailsTaxes on YourPaymentsSECTION 7:When you enroll, you choose the percentage of EligiblePay you want to contribute – from 1% to 50% of yourEligible Pay. You will also choose investments for yourAccount.SECTION 8:SECTION 6:Plan DistributionsAfter TerminationIf you do not properly name a beneficiary before yourdeath, or if your designated beneficiary is not living at thetime of your death, the distribution will be paid to yoursurviving Spouse if you were married, or to your estate ifyou were single at the time of death.Legal process may also be served on the Trustee at theaddress listed above.SECTION 5:SECTION 3:Plan InvestmentOptionsVesting ofYour AccountSECTION 2:800-838-5160If you wish to make a change later, you may enter thechange by visiting www.BSWHretirement.com or callingEmpower Retirement at 1-844-722-BSWH(2794).Page 5

INTRODUCTIONContributionsto Your AccountSECTION 1:Vesting ofYour AccountSECTION 2:SECTION 3:Plan InvestmentOptionsPlanLoansSECTION 4:PlanWithdrawalsSECTION 5:SECTION 6:Plan DistributionsAfter TerminationTaxes on YourPaymentsSECTION 7:Other PlanDetailsSECTION 8:SECTION 1: Contributions to Your AccountYou may make both pre-tax and Roth after-taxcontributions to the Plan. Pre-tax contributions and Rothcontributions give the Plan a distinct advantage over abank savings Account or other post-tax savings optionsbecause all earnings are tax-deferred. In addition,Baylor Scott & White’s matching contribution increasesyour retirement Account and also provides tax-deferredearnings. Some employees who work primarily in theCentral Texas division are eligible to make salary deferralsunder the Baylor Scott & White Health 403(b) Plan, notthis Plan; however, for these employees, Baylor Scott &White’s matching contribution is made under the BaylorScott & White Health Retirement Savings Plan.What is Eligible Pay?Your contributions (and employer matchingcontributions) are based on your Eligible Pay.Eligible Pay is generally your base pay. SeeAppendix A for a complete definition.YOUR CONTRIBUTIONSThe Plan allows you to contribute up to 50% of yourEligible Pay (in whole percentages) through convenientpayroll deductions. At your election, these may beeither pre-tax, Roth after-tax 401(k) contributions, or acombination of both. Roth contributions will be accountedfor separately from pre-tax contributions due to differencesin federal income tax characteristics.Your pre-tax contributions to the Plan are deducted fromeach of your paychecks before federal (and, in most cases,state and local) income taxes are withheld. As a result,your taxable income is reduced by the amount you save,so you pay less in current taxes. You defer paying incometaxes on your contributions and any earnings until you takethe money from your Account.Your pre-tax contributions are, however, considered partof your taxable income for purposes of calculating SocialSecurity and Medicare (FICA) withholding taxes. Thismeans your Plan pre-tax contributions will not reduce yourSocial Security taxes or benefits. Your pre-tax contributionswill also not affect any pay increases or any pay-relatedbenefits you are eligible for and elect, such as lifeinsurance and disability insurance.The following example shows how you benefit from savingwith pre-tax dollars compared with contributing posttax dollars to a regular savings Account. This exampleassumes your Eligible Pay is 50,000 a year, you file asingle income tax return and you save 5% of your pay( 2,500) each year.Pre-taxsavingsPost-taxsavingAnnual pay 50,000 50,000Minus pre-taxcontribution( 2,500) 0Taxable income 47,500 50,000Minus federal incometaxes at 20%( 9,500)( 10,000)Minus after-tax saving 0( 2,500)Estimated take-homepay 38,000 37,500 500 0Increase in takehome pay by savingspre-taxNote: This is only an example and considers only federal taxes at a 20%rate. Your actual tax savings may vary depending on your tax status,whether you file a joint return, and income. This example does not reflectany investments or returns in the Plan’s fund options.Your Roth contributions are deducted from each paycheckafter federal income taxes are withheld.Whether your contributions are pre-tax or Roth after-tax,you do not pay taxes on your investment earnings until youtake a distribution from the Plan. This income tax deferralcan help your savings grow faster.CONTRIBUTION LIMITSThe IRS sets limits on the amount of pre-tax and Rothcontributions you may make each year under all taxqualified retirement plans. These limits may change eachcalendar year, please see Appendix C for the currentlimits.If you participated in another employer’s 401(k) planand this Plan during the same calendar year and thecombination of pre-tax and Roth contributions to bothplans exceeds the maximum IRS contribution dollar limit,you should request that the excess amount be returnedto you from one of the plans. To request a refund from thePlan, you should submit your request no later than MarchBaylor Scott & White Health 401(k) Savings Plan Summary Plan DecriptionPage 6

INTRODUCTIONContributionsto Your AccountSECTION 1:Vesting ofYour AccountSECTION 2:SECTION 3:Plan InvestmentOptionsPlanLoansSECTION 4:PlanWithdrawalsSECTION 5:SECTION 6:Plan DistributionsAfter TerminationTaxes on YourPaymentsSECTION 7:Other PlanDetailsSECTION 8:15th of the following year. Otherwise, the excess will betaxable income to you in the year of the contribution and inthe year of any distribution. Keep in mind that you will alsoforfeit any matching contributions attributable to the excesscontributions distributed to you.If you wish to have excess contributions refunded to youfrom the Plan, please call Empower Retirement at 1-844722-BSWH (2794), Monday – Friday, 8:00 a.m. –7:00 p.m. CST.ANNUAL CONTRIBUTIONS LIMITSFOR HIGHLY COMPENSATEDEMPLOYEESThe Internal Revenue Code requires that the Plan complywith certain “non-discrimination” tests to ensure the Plan’stax advantages are evenly distributed. If you are a HighlyCompensated Employee, these tests may affect theamount you are permitted to defer or the amount of aftertax contributions and employer matching contributions thatmay be allocated to your Account.In order to comply with these non-discrimination rules,a portion of your pre-tax or Roth after-tax contributions(and applicable earnings), and where necessary, vestedmatching contributions (and applicable earnings) maybe distributed to you. In addition, non-vested matchingcontributions that relate to pre-tax or Roth after-taxcontributions that must be refunded will be forfeited.The Plan Administrator will notify you if a distribution isrequired. Generally, any required distributions will occuron or before March 15th of the following Plan Year.Distributions that are made as a result of a failure of thenon-discrimination tests are reported on IRS Form 1099-Rand included in taxable income in the year in which theyare received.CHANGING YOUR CONTRIBUTIONSIf your financial situation changes during the year, you maywant to increase or decrease your contribution election.You may change the amount you contribute to the Planat any time at www.BSWHretirement.com or by callingEmpower Retirement at 1-844-722-BSWH(2794), Monday– Friday, 8:00am – 7:00pm CST. Your election change willbe processed as soon as administratively possible afteryou submit the change. Depending on when you submitthe change, your new election will typically be reflectedon your next regular paycheck or the following paycheck.In some instances, a banking or nationally recognizedholiday or unforeseeable event may delay the updatingof your contribution. If your Eligible Pay changes duringthe year, the dollar amount of your contribution amountautomatically changes because the contribution is apercentage of your pay.POST-TAX CONTRIBUTIONSThe Plan previously permitted non-Roth after-taxcontributions, but no longer allows them as of August1, 2016. If you previously made these contributions,you continue to have an After-Tax Contribution Accountthat holds your past after-tax contributions plus relatedearnings.CATCH-UP CONTRIBUTIONSCatch-up contributions are intended to help olderemployees who want to increase their savings as theyapproach retirement age. If you are eligible, this provisionallows you to make additional pre-tax or Roth contributionseither after you have first met your combined pre-tax andRoth contribution limit or in conjunction with your pretax and Roth contributions. To be eligible for this highercontribution limit, you must: Be at least age 50 by the end of the calendar year.You may elect catch-up contributions at any timeduring the calendar year in which you turn age 50 orolder. Defer the maximum amount allowed by the IRS forpre-tax and Roth contributions before the end of thecalendar year.Catch-up contributions are not eligible for the Baylor Scott& White matching contribution.IN-PLAN ROTH CONVERSIONThe Plan now permits you to make an in-Plan Rothconversion, if desired. This is a rollover to a Roth Accountfrom any of the following Accounts you have in the Plan:Pre-Tax Contribution Account, vested Scott & WhiteRetirement Plan Non-Elective Contribution Account, vestedMatching Contribution Account, or Rollover Account. Theamount you elect to rollover will be considered taxableincome to you in the year in which the rollover occurs.When you later receive a distribution from a Roth RolloverAccount, the distribution may be eligible for favorabletax treatment. See the Distributions Section for moreinformation.ROLLOVER CONTRIBUTIONS TOTHE PLANIf you worked for another employer and participated in aqualified retirement plan, 401(k) plan, 403(a) plan, 403(b)plan or governmental 457(b) plan, you may be able totransfer your pre-tax Account balance or Roth 401(k)Account balance from that plan into the Plan. You mayalso transfer the balance of a “conduit” IRA into the Plan. Aconduit IRA holds only a qualified retirement plan rolloveramount and related earnings.Baylor Scott & White Health 401(k) Savings Plan Summary Plan DecriptionPage 7

INTRODUCTIONContributionsto Your AccountSECTION 1:Vesting ofYour AccountSECTION 2:SECTION 3:Plan InvestmentOptionsPlanLoansSECTION 4:PlanWithdrawalsSECTION 5:SECTION 6:Plan DistributionsAfter TerminationTaxes on YourPaymentsSECTION 7:You may make a rollover contribution as soon as you arehired. Your rollover is always 100% vested and belongs toyou. Loans may be eligible to be rolled into the Plan, only ifapproved by the Plan Administrator. Rollover contributions,with or without an associated loan, must meet specificrequirements as defined by the IRS and Plan Administrator.Rollovers are not eligible for the employer match.To make a rollover contribution, request a form by visitingwww.BSWHretirement.com or for questions regardingrollover eligibility, contact Empower Retirement at1-844-722-BSWH (2794), Monday – Friday, 8:00 a.m. –7:00 p.m. CST.EMPLOYER MATCHINGCONTRIBUTIONSTo encourage you to save for your future financial security,Baylor Scott & White offers a dollar-for-dollar matchingcontribution on the first 5% of Eligible Pay you contributeto the Plan. Baylor Scott & White matches your pre-taxand Roth after-tax contributions, subject to the limit onrecognized compensation. If you contribute 5% or less of Eligible Pay, BaylorScott & White matches the same percentage of paythat you elect to save. If you contribute more than 5% of your Eligible Pay,Baylor Scott & White matches the first 5% of yourcontributions only. Catch-up contributions are not matched. You are eligible to receive the matching contributionas soon as you begin contributing. The match is madeto your Account for each pay period in which youmake a contribution and has the same investmentoptions available as your contributions.The Baylor Scott & White’s matching contribution cansignificantly increase the value of your Account, especiallywhen you factor in additional investment earnings it helpsyou to generate. Here’s an example:Assumeyou earn 50,000 ayearand yourelection isYoucontribute3% of pay 1,500BSWHadds thematchTotal Plancontributionis 1,500 3,000EMPLOYER MATCH OPTIMIZATIONOR “TRUE-UP”Baylor Scott & White’s matching contribution is made eachpayroll period. Then, after the end of each Plan Year, BaylorScott & White may make an additional annual “true-up”matching contribution. A true-up matching contributionensures that those whose Eligible Pay or contributionrate varies during the Plan Year still receive the full matchamount for the Plan Year. The true-up calculation comparesyour Plan Year contributions to the matching contributionsallocated to your Account as of the end of the Plan Year.Then, an additional matching contribution will be allocatedto your Account if necessary to provide the total annualmatching contribution to which you are entitled underthe matching formula, considering your Eligible Pay andcontributions for the entire Plan Year.While the true-up contribution is not required untilOctober 15 of the following Year, the calculation is usuallyperformed by the end of the first quarter of the followingYear. Any additional matching contribution due is allocatedto Accounts shortly thereafter.ACCOUNTING FOR CONTRIBUTIONSAND MERGED PLAN ACCOUNTSThe Baylor Scott & White Health Retirement SavingsPlan is a combination of the Baylor Health CareSystem Retirement Savings Plan and the Scott & WhiteRetirement Plan, which merged effective August 1, 2016.All contributions to the Plan are held in trust for theexclusive benefit of Plan Participants and beneficiaries.Contributions are credited to one or more separateAccounts established in your name, most of which aretracked separately because different Plan terms applyto different Accounts. Some Participants may have oneor more Accounts in the Plan that originated in an earlierplan, such as the Scott & White Retirement Plan, theJohns Hospital 401(k) Plan, or the Hillcrest Baptist MedicalCenter 401(k) Plan. In addition, some of these plansheld funds that originated in a pension plan or a moneypurchase pension plan. For any money that originated inone of these types of plans, different distribution rules andspousal consent rules apply, as described in more detaillater in this Summary Plan Description. See the Glossaryfor a complete list of Accounts under the P

Baylor Scott & White Health 401(k) Savings Plan Summary Plan Decription Page 1 INTRODUCTION