Your step-by-step guide to a secure retirement. Prepare for your future. Today

Transcription

1 Your step-by-step guide to a secure retirement Prepare for your future Today

2 Build the Retirement You Deserve It's never too early to start saving for tomorrow. Putting away as much as you can afford right now can go a long way towards securing your retirement dreams. Whether you were enrolled in a previous employer's plan or you're starting new, this booklet highlights information you need to know about the retirement plan offered by National Home Health Care Corp.. If you're unsure of how much to save, how to create an investment strategy, or how to select your investments - don't worry! This booklet is designed to help you learn about your retirement plan and help you develop your own savings strategy. In this booklet you will find: u Sentinel Benefits' 4-Step Retirement Education Guide u Plan Highlight u Plan Information & Expenses u New Participant Enrollment Form u Participant Rollover Form Ready to learn more? Turn the page to begin developing your retirement strategy! Already know your retirement strategy? Look no further, follow these simple steps. ENROLL REGISTER Complete the New Participant Enrollment Form and return it to your HR Department to enroll. Go online to click "Register," enter your Plan Access Code ( ) and follow the instructions to set up a USERID and password. LIKE us on Facebook at Follow us on

3 4-Step Plan for Retirement Building your career, taking on more responsibility and Like most good things in life, the retirement you deserve won t happen by chance.you re going to have to plan for it. earning more money is very Sentinel Benefits retirement program was designed to enable rewarding and fulfilling. need to plan the future you want. This guide will show you you to get the information and access to the tools you However, working hard why saving regularly for retirement and starting as soon as without a retirement strategy future. It will give you a better understanding of the factors can create disappointing savings through your employer sponsored plan.* results. Many of us spend a great deal of time and energy making our today better, but what about our tomorrow? you can are two of the best choices you can make for your affecting your retirement and the benefits of tax-deferred Four simple steps, will help you create a sound investment plan that meets your personal objectives for a secure and fulfilling retirement by showing you how to: 1 Step 2 Step 3 Step 4 Step Determine how much to save Create an investment strategy Select your investments Enroll in the plan *There is no guarantee that any investment portfolio will achieve investment objectives. Investments of this type are subject to market risk and include the possibility of loss of principal.

4 Step1 Determine how much to save The fi rst step is fi guring out how much money you will need to save for your retirement. Most fi nancial advisors suggest that you will need 80 of your pre-retirement income to maintain the quality of life you enjoy now. The Sooner the Better Invest early and often. By beginning at age 25 your retirement account can accumulate over $300,000 more than someone beginning in their 30s. Social Security is not enough. Social Security was not designed to replace 100 of the income you earned while working. In fact, Social Security provides only about 39 of the average person s retirement income needs, according to the Social Security Administration. 1 Financing the gap between what Social Security will pay you and what you will need to live is your responsibility. People are living longer. People are living longer, and some are retiring earlier, which means your retirement could last almost as long as your working years. You should consider having a retirement income that will last at least 20 years, and probably a lot more. Infl ation reduces your purchasing power. Infl ation is defi ned as a general rise in the cost of goods and services. Over time, infl ation not only reduces the purchasing power of your money, it also may reduce the earning power of your savings. When creating your retirement plan, you should assume an annual infl ation rate of 3. This chart illustrates the advantages of starting a savings plan as early as possible. This example assumes an annual income of $25,000 (without increases), 6 contribution, 8 rate of return, and monthly compounding. * Compound Interest The key to a successful retirement is learning how to make your money work for you. When you compound your money, you take the interest you earn and push it back into your account. Then, the next time interest is added, it s on the new, larger total. The longer you leave your money in your account, the more it grows. 1 Social Security Administration (2013, February 7). Social Security Basic Facts. Retrieved March 17, 2013 from * This chart is for illustrative purposes only and is not intended to represent the performance of any specific investment. Actual returns will vary and principal value will fluctuate. Taxes are due when money is withdrawn.

5 The Benefi ts of Participating Saving through your retirement plan is a smart choice because you will be saving money before taxes and it can grow on a tax-deferred basis (meaning that you do not have to pay taxes on your contributions or the earnings accumulating in your retirement plan until you make a withdrawal). Your plan may also offer a Roth 401(k) deferral option. Roth contributions are made on an after-tax basis. All earnings and interest earned on Roth contributions grow federal tax free, therefore you will not have to pay taxes when you withdraw for your retirement. With either of these options, the more you contribute to your plan, the larger your retirement savings (and tax savings) may be. It Pays to Save Before-Tax Consider the following: You will be taxed on a smaller gross income, thereby reducing your income tax bill You will enjoy the convenience of automatic deductions that are regularly deposited in your retirement account by your employer You can take your before-tax savings with you when you change jobs This example illustrates how pre-tax savings reduces your taxable income so you have more to spend now while saving for retirement. Watch Your Savings Grow Tax-Deferred If your company offers a match and you re not taking advantage of it, you are losing out on free money This example assumes saving $2,000 per year for 30 years. The interest rate assumed is 8. The tax rate is 25. Tax deferred savings produced $68,460 more to start retirement. * *The above chart does not include the effect of sales tax. It is hypothetical and is for illustrative purposes only, not intended to be a representation of any specific fund. Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the above returns. Changes in tax rates and tax treatment of investment earnings may impact the comparative results. Investors should consider their personal investment horizon and income tax brackets, both current and anticipated, before making an investment decision.

6 Retirement Planning Worksheet Your Monthly Retirement Need Example Your Answer 1. Current monthly pay (before taxes and deductions)... $4, Pay increase factor (see Table 1)... x Monthly pay at retirement (multiply line 1 by line 2)... $8, Your percent of pay needed at retirement (70-90 recommended) Your monthly retirement goal (multiply line 3 by line 4)... $6,967 Your Monthly Retirement Goal 6. Current value of all retirement accounts... $50, Monthly income factor (see Table 2)... x Monthly income at retirement (multiply line 6 by line 7)... $2, Monthly income from Social Security (see Table 3)... $3, Total expected monthly income at retirement (add lines 8 and 9)... $6,077 *If this number is less than line 5, you are short of your goal. Amount You Need to Save 11. Subtract line 10 from line 5... $ Monthly savings factor (see Table 4)... x Monthly savings amount needed to meet retirement goal... $123 (multiply line 11 by line 12) * Assumes your pay is increased at 3 per year. ** Results assume that you retire at age 65. *** For an estimate of your Social Security benefits, you can use this table or contact the Social Security Administration at or for a Personal Earnings and Benefit Estimate Statement. The information is not intended to represent the return of any specific investment or to be construed as personalized legal, tax, investment financial, or other advice. There is no guarantee that these figures will be attainable in the future.

7 Step2Create an investment strategy Investment Risk Tolerance Worksheet Evaluate Your Risk Tolerance Getting the most from your retirement plan requires you to understand how much risk you are able to tolerate as an investor. You need to look at the long term goal, which is to give your retirement plan account the potential to grow at a rate faster than infl ation. Keep in mind, these growth opportunities come with more risk. In general, the closer you are to retirement, the less risk you should take with your investment choices. This is why it is always better to start sooner rather than later. What Type of Investor Are You? To help you identify an investment strategy that meets your tolerance for risk, we recommend you complete the Investment Risk Tolerance Worksheet to determine if you are a conservative, a moderate, or a growth investor. Once you get your results, you ll be ready to invest for your retirement. This questionnaire is intended to help you better understand how your personal feelings and experience can impact your decision to invest for retirement. Rank yourself on a scale from 1 to 5 as to whether you agree or disagree with the statement. To obtain above-average returns on my investments, I am willing to accept above-average risk of investment losses. Staying ahead of infl ation is more important to me than maintaining stable principal values. If an investment loses money over the course of a year, I can easily resist the temptation to sell it. I do not plan on withdrawing my retirement money for a major expense before I retire. I consider myself knowledgeable about economic issues and personal investing. Total Score: 1 = Strong disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree CONSERVATIVE MODERATE BALANCED GROWTH AGGRESSIVE Conservative (Low Risk) Range 5-8 points If you score in this range, you are most concerned about protecting your capital. You may be approaching retirement or simply prefer to preserve as much of your investment as possible. Moderate Range: 9-13 points If your score is in this range, then you are a cautious investor. You are willing to diversify to spread out some of your risk. You want your money to grow, but are more concerned about protecting the value of your investments. Balanced Range: points This score indicates that you want a balance between your money s growth and its security. To increase your potential for higher returns over time, you will accept some risk. Growth Range: points If your score is in this range, then you are the type of investor primarily interested in the growth of your portfolio and are somewhat comfortable with stock market fl uctuations in order to gain higher returns over the long term. You may have more time on your side until you retire. Aggressive (High Risk) Range: points If your score is in the range, then you are comfortable with taking a lot of risk to maximize return on your investment. You may want long term growth of your retirement savings. You understand fl uctuations of the stock market and you have plenty of time to wait out these market cycles until you retire.

8 Risk vs. Return Range of Asset Class Returns This chart shows the historical range of returns of each asset class. As you can see, more aggressive investments tend to have higher potential returns, yet also have high levels of associated risk. It is important to balance your expectations about returns with the relative degree of risk you are willing to assume. Your age, existing fi nancial needs and long term goals are all essential to consider when choosing investments for your portfolio. Risk is defi ned as the amount that the investment s value fl uctuates over time. Risky investments go up and down more steeply than safer investments. Risk and return have a direct relationship. Usually as an investment s potential return increases, its level of risk increases too. Conversely, safer investments tend to have lower return potential. Each bar shows the range of compound annual returns for each asset class over the period This is for illustrative purposes only and not indicative of any investment. Created by Sentinel Benefits & Financial Group Morningstar. Hypothetical value of $1 invested at the beginning of Treasury Bills United States Treasury Securities with maturities less than one year. Immediate Government Bonds Fixed Income securities from government issuers that generally have maturities in the range of 3 to 10 years. Long-Term Government Bonds - Fixed Income securities from government issuers that generally have maturities in the range of 10 to 30 years. Large Stocks Equity securities from companies with market capitalizations greater than $10 bilion. Small Stocks - Equity securities from companies with market capitalizations smaller than $2 bilion.

9 Diversifi cation Don t put all your eggs in one basket is as sound advice as you can get. Diversifying among several investments or asset classes is another way to reduce potential risk. It s important to build an appropriate mix of investments so that your overall mix or portfolio of investments can achieve maximum potential returns without exposure to more risk than you re comfortable taking. Why is diversification important? It helps reduce the volatility of your investment portfolio by spreading the risk across multiple investments or asset classes. It increases potential returns or decreases potential losses since a down period in one investment or asset class can be offset by gains in another How it Works Two investors, Tom and June, each have $50,000 in investments. Tom has put all his eggs in one basket, or one investment (Fund A). Conversely, June diversifi ed her assets into two equal investments (Fund A & Fund B). Account Values Before Market Decline Account Values After Fund A Declines 20 Imagine Fund A loses some of its value (20) while Fund B remains the same. In this example, Tom would see his entire investment decrease by 20, or $10,000. June, who is diversifi ed, is less impacted by the loss of Fund A, and her portfolio experiences a loss of only $5,000. Diversification may not protect against market risk.

10 Step3Select your investments Now that you ve identifi ed your retirement savings goals and are comfortable with your risk profi le, you are ready to select your investments. A Better Rate of Return Can Make a Big Difference at Retirement The investments offered in your plan have been chosen by your company s investment committee. The goal for their selection was to offer a variety of investments to provide opportunity for diversifi cation. Diversifi cation in your plan is best achieved through asset allocation; spreading your account among several investment options in your plan. Your goal when selecting investments should be to allocate a portion of your account to stocks, bonds and cash. The proportion you allocate to each asset class will depend on your time horizon for investing and your risk tolerance. While there are a growing number of asset classes, there are three basic asset classes that typically comprise the majority share of an investment plan: Equities (stock), Fixed Income (bond), and Cash (money market or stable value). The chart on the next page provides recommended asset allocation strategies, based on your Risk Profi le (see Step 2) and your age. These strategies may be considered as a starting point when selecting investments for your plan. This example illustrates the difference between earning 6 and 10 on an initial investment of $10,000 over 30 years. You will fi nd a complete list of available investments in this package of information. How your retirement plan performs will depend on how much money is contributed to your account and how well you invest your account. Before you invest, take the time to review the fund information carefully. It describes each investment manager, investment type, return characteristics, and risk and performance history. This chart is for illustrative purposes only and is not intended to represent the performance of any specific investment. Actual returns will vary and principal value will fluctuate. Taxes are due when money is withdrawn.

11 Match your risk tolerance score to one of the risk strategies points Conservative 9-13 points Moderate Once you decide to diversify among the alternatives offered by your plan, you need to decide how much money to put in the various types of funds. This is called asset allocation. Picking your funds is an important step to getting your retirement program off to the right start. The pie charts shown to the left give a suggested investment strategy depending on what type of investor you are (conservative vs. aggressive). Cash Fixed Income U.S. Equities Foreign Equities Cash points Balanced Typically a money market or stable value option represents the cash option. Keep the cash portion simple and pick the one that you like. Fixed Income points Growth A security that pays a specific interest rate, such as a bond, money market instrument, or preferred stock. U.S. Equities points Aggressive Funds that invest in U.S. securities based on their asset class definitions (Small, Mid, or Large). For example, Large Cap Growth typically invests in the securities of large companies ($5B market capitalization) with above-average prospects for earnings growth. Foreign Equities Funds that invest in international securities.

12 Step4Enroll in the plan. Your last step is to put your plan into action by enrolling in your retirement program. It s easy to enroll. You ll find everything you need in this enrollment guide, including your investment choices and instructions for selecting investments, deciding how much money to save each pay period and choosing your beneficiary. Please read all of the materials carefully before making any decisions about how to invest your money. If you have any questions about your plan, contact us online at or call us at For more complete information on mutual funds associated with your retirement program, including charges and expenses, you may obtain a prospectus from our website. Please read all the materials carefully before you invest. Your Plan Online All the Time Your retirement plan helps you stay on track for your long-term investment goals by giving you the control and fl exibility to manage your retirement account however you choose. Log on to to: How to Register Online When you register online with Sentinel Benefi ts, you will be able to gain access to your account. Go to sentinelgroup.com and hover over ACCOUNT ACCESS in the upper right corner. Select Login to your FSA, HRA, Retirement account in the For You category of the dropdown menu. Once you are on the Account Access web page, click Register Online. Enter the required information and press Begin. To successfully register online, you will need to know your Plan Access Code. If you do not know your Plan Access Code, you can fi nd it on page one of this kit, or you can obtain it from your Human Resources representative. After you complete the registration process, you will no longer need the Plan Access Code to enter your account. All you will need to remember is your User ID and Password that you created. You will receive an confi rmation of your completed registration within 24 hours. Check your account balance Calculate the amount you want to invest based on your lifestyle and savings potential Track the performance of your investments Change your investment strategy at any time v Retirement Education Guide Enrollment Kit

13 Plan Highlight National Home Health Care Corp. Savings & Stock Invest Plan Plan Year 1/1/2015 to 12/31/2015 Important information about my Plan Highlight This Plan Highlight is provided as a quick reference to certain key provisions of your retirement plan. Since the plan is based on a complex legal document, the Plan Highlight does not attempt to describe every aspect of the plan or to detail all of its terms. For more complete descriptions of plan provisions, refer to the Summary Plan Description (SPD). If there is a conflict between this Plan Highlight and the SPD, the SPD will prevail. Can I participate? Unless you are part of an excluded class of employees, you are eligible for the plan when you have attained age 21. You must also complete six month(s) of service. Please review your Summary Plan Description (SPD) to determine if you are a member of an excluded class of employees. When can I start contributing? Once you are eligible for this program, you may begin participating on the Plan's "Entry Date." The entry date(s) will be quarterly. Your Entry Date will be the first day of the quarter on or following the date the eligibility requirements are satisfied. How much can I contribute? You may defer as much as 100 of your eligible wages up to the indexed IRS dollar limitation which is $18,000 in If you are age 50 or older by the end of plan year, you are also eligible to make additional 'catch-up' contributions up to the IRS limitations of $6,000 this year. All contributions are made on a pre-tax basis for federal income tax purposes and may be made on a pre-tax basis for state income tax purposes, if applicable in your state. Contributions are not made before Federal payroll tax (FICA). How does NATIONAL HOME HEALTH CARE CORP. contribute to my account? Your Employer will make a Safe Harbor Matching Contribution proportionate to your 401(k) Contributions. Refer to your Summary Plan Description (SPD) for more information. Your Employer is also required to provide an annual notice regarding their Safe Harbor Contribution which will outline the contribution requirements. You will be eligible for the Safe Harbor contribution when you meet the initial entry requirements for the plan. How do I become vested? Vesting is your ownership in your retirement account balance. You are always 100 vested in your Employee Deferrals, Rollover Contributions and in the associated investment gains. However, money contributed by the Company may be subject to a vesting schedule. Service for vesting purposes starts from your original date of hire. For each year that you complete 1,000 hours of service, you will be credited with one Year of Service for vesting purposes. Should you leave the company prior to the required service to be fully vested in your entire account balance, you will be entitled to receive an applicable percentage of the employer's contribution as shown below, plus the entire balance of your deferral contributions, Rollover Account(s) and any Employer Contributions made to a fully vested account (examples include Safe Harbor contributions). Source Safe Harbor Match Vesting Schedule 100 vested immediately As of May 21, 2015

14 Plan Highlight National Home Health Care Corp. Savings & Stock Invest Plan Plan Year 1/1/2015 to 12/31/2015 When can money be withdrawn from my account? You may receive a distribution from the Plan upon separation of service. Your plan also allows in-service distributions. You may be permitted to take a distribution of all or a portion of your vested account while still an active employee. Please review your SPD to determine if you are eligible for this type of distribution. May I withdraw funds in the case of a financial hardship? You may take a distribution from your account if a heavy financial burden can be demonstrated to the Plan Administrator. You must demonstrate that you are unable to obtain funds from any other source. The IRS has provided guidance to assist Plan Administrators in identifying a qualified hardship. A hardship distribution may be distributed only from eligible accounts for the following reasons. buying a principal residence, paying for your or a dependent s college education, paying certain medical expenses, preventing eviction from or foreclosure on your principal residence, paying for funeral expenses, or paying for qualifying repairs to your principal residence, within tax law limits. Once a hardship distribution is approved and released by the Plan, you will be suspended from making any employee deferrals for your Plan's suspension period of 6 months. May I borrow money from my account? Yes, your Plan allows participant loans. The amount the Plan may loan to you is limited by IRS rules. The maximum loan is 50 of your vested balance up to $50,000. The minimum loan is $1,000. A personal loan may be taken for 5 year(s). A loan for a primary residence may be taken for 30 year(s). The maximum number of outstanding loans is one. The interest rate will be 1.00 point(s) () over the Prime Rate in effect at the time the loan is granted. Please review your loan policy as there may be limitations on the reasons and sources you may borrow from your account. Disclaimer This Plan Highlight is not your Summary Plan Description. This material is intended to provide you with general information about the Plan. Should information in this Plan Highlight conflict with your Plan Document or Summary Plan Description, the Plan Document is the legally controlling document. As of May 21, 2015

15 Safe Harbor Notification to Eligible Employees National Home Health Care Corp. Savings and Stock Investment Plan This is an annual notice and only applies to the Plan Year beginning on 1/1/2015. This notice covers the following points: u How much you can contribute to the Plan; u What other amounts the Employer may contribute to the Plan for you; and u When your Plan Account will be vested (that is, not lost when you leave your job), and when you can receive a distribution of your Plan account. You can find out more information about the Plan in the Plan's Summary Plan Description (SPD). You can obtain a copy of the SPD from the Plan Administrator. Employee Deferral Contributions You are allowed to defer a portion of your compensation to the Plan. These amounts are referred to as deferrals and are held in an account for your behalf. When you are permitted to take a distribution from the Plan, you will be entitled to all of your deferrals, as adjusted for any gains or losses. The type of compensation that may be deferred under the Plan is explained in the section of the Summary Plan Description entitled "What compensation is used to determine my Plan benefits?" (this is in the Article entitled "COMPENSATION AND ACCOUNT BALANCE"). Your total deferrals in any taxable year may not exceed a dollar limit which is set by law. The dollar limit may increase each year for cost of living adjustments. The Administrator will notify you of the maximum percentage you may defer. The amount you elect to defer, and any earnings on that amount, will not be subject to income tax until it is actually distributed to you. However, the amount you defer is counted as compensation for Social Security taxes. If you are at least age 50 or will attain age 50 during a calendar year, then you may elect to defer additional amounts (called "catch-up contributions") to the Plan. These are additional amounts that you may defer, up to an annual limit imposed by law, regardless of any other limits imposed by the Plan. Employer Safe Harbor Contribution Election To help you make an informed decision on the level of your own elective deferral contributions, if any, your Employer must inform you about the contributions it will make to the Plan. Your Employer has elected to make the following employer safe harbor contribution: Safe Harbor Matching Contribution. In order to maintain 'safe harbor' status, your Employer will make a safe harbor matching contribution equal to 100 of your elective deferrals that do not exceed 3 of your compensation plus 50 of your elective deferrals between 3 and 5 of your compensation. This safe harbor matching contribution is 100 vested. For purposes of calculating the safe harbor matching contribution, your compensation and deferrals will be computed for each payroll period. Suspension or Reduction of Safe Harbor Contribution. The Employer retains the right to reduce or suspend the safe harbor contribution under the Plan. If the Employer chooses to do so, you will receive a supplemental notice explaining the reduction or suspension of the safe harbor contribution at least 30 days before the change is effective. The employer will contribute any safe harbor contributions you have earned up to that point. At this time, the Employer has no such intention to suspend or reduce the safe harbor contribution. Other Employer Contributions In addition to the above, other contributions may be made to the Plan. You should review the Article of the SPD entitled "EMPLOYER CONTRIBUTIONS" for details regarding these other contributions. Prepared for National Home Health Care Corp. Savings and Stock Investment Plan

16 Safe Harbor Notification to Eligible Employees National Home Health Care Corp. Savings and Stock Investment Plan Vesting The following is a general explanation of the vesting provisions of the Plan. More details can be found in the Article of the SPD entitled "VESTING." 100 vested contributions. You are always 100 vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions: u elective deferrals including catch-up contributions u rollover contributions u safe harbor contributions Vesting schedules. Your "vested percentage" for certain Employer contributions is based on vesting Years of Service. This means at the time you stop working, your account balance attributable to contributions subject to a vesting schedule is multiplied by your vested percentage. The result, when added to the amounts that are always 100 vested as shown above, is your vested interest in the Plan, which is what you will actually receive from the Plan. Nonelective Contributions Your vested percentage in your account attributable to additional nonelective contributions is determined by a 6 Year Graded schedule. A six year graded vesting schedule grants 20 ownership after two years, then 20 more each year until you gain full ownership after six years. If you leave before six years are up, you get to keep only the percentage of your employer's nonelective contributions in which you are vested. You may also be 100 vested in your nonelective contributions if you are employed on or after your Normal Retirement Age or if you terminate employment on account of your death, or if you terminate employment as a result of becoming disabled. Distribution Provisions The Plan and law impose restrictions on when you may receive a distribution from the Plan. Below is general information on when distributions may be made under the Plan. See the SPD for more details, including details on how benefits are paid. Also, at the time you are entitled to receive a distribution, the Plan Administrator will provide you with a notice explaining the rules regarding the taxation of the distribution. You generally may not withdraw your deferral contributions except when one of the following events occurs: severance from employment with the Employer, death, or for certain in-service provisions as set in your Summary Plan Description. You are always 100 vested in your deferral contributions. You may withdraw any additional contributions provided for in "Other Employer Contributions" upon your death or termination of employment. If your vested account balance exceeds $5,000, you may elect to have your vested account balance distributed to you as soon as administratively feasible following the date on which you terminate employment. If your vested account balance does not exceed $5,000, a distribution of your vested account balance may be made to you as soon as administratively feasible following the date on which you terminate employment. You may also withdraw money from the Plan from certain accounts if you have reached age 65.0 or if you have an immediate and heavy financial need. However, there are various rules and requirements that you must meet before any withdrawal is permitted. See the Article in the SPD entitled "DISTRIBUTIONS PRIOR TO TERMINATION OF EMPLOYMENT" for more details. Administrative Procedures The amount you elect to defer will be deducted from your pay in accordance with a procedure established by the Administrator. The procedure will require that you enter into a written salary reduction agreement after you satisfy the Plan's eligibility requirements. Your election will become effective Prepared for National Home Health Care Corp. Savings and Stock Investment Plan

17 Safe Harbor Notification to Eligible Employees National Home Health Care Corp. Savings and Stock Investment Plan as soon as administratively feasible. Your election will remain in effect until you modify or terminate it. You may revoke your salary deferral election at any time. You may make any modifications on the first day of the plan year quarter or in accordance with the procedures that the Plan Administrator provides. In addition to any other election periods provided above, you may make or modify a deferral election during the 30 day period immediately preceding the Plan Year for which this notice is being provided. For the Plan Year you become eligible to make deferrals, you may complete a salary deferral agreement during a 30 day period that includes the date you become eligible. If you decide to start or change your elective deferral, you must complete the salary reduction agreement and return it to the Plan Administrator. Investments Right to direct investment/default investment. You have the right to direct the investment of your deferrals and also other accounts under the Plan (your "directed accounts") in any of the investment choices explained in the investment information materials provided to you. We encourage you to make an investment election to ensure that amounts in the Plan are invested in accordance with your long-term investment and retirement plans. However, if you do not make an investment election, then the amounts that you could have elected to invest will be invested in a default investment that the Plan officials have selected. Employer's Right to Terminate Plan Pursuant to the terms of the Plan, your Employer has the right, at any time, to terminate the Plan. Termination of the Plan will result in the discontinuance of all contributions to the Plan (including the safe harbor 401(k) contribution) with respect to any compensation you receive after the effective date of the termination. Termination of the Plan will not affect your right to receive any contributions you have accrued as of the effective date of the termination. Additional Information This notice is not a substitute for the Summary Plan Description. The provisions of the Plan are very complex and you should always look at the Summary Plan Description if you have any questions about the Plan. If, after reading the Summary Plan Description, you still have questions, contact the Plan Administrator. The Plan Administrator is the Employer. You may contact the Employer at: Contact: National Home Health Care Corp. Address: 700 White Plains Road, Suite 275 City/State/Zip: Scarsdale, NY Telephone: (914) Prepared for National Home Health Care Corp. Savings and Stock Investment Plan

18 Plan Information & Expenses National Home Health Care Corp. Savings and Stock Investment Plan Why am I receiving this document? You are receiving this document because you are a participant or beneficiary in the National Home Health Care Corp. Savings and Stock Investment Plan or you are eligible for participation. This disclosure provides important information about the general operations of this plan, administrative charges or expenses of this plan, individual expenses you may be charged, and if applicable, a chart of plan investment options with associated expenses and comparative index information. What information may I obtain about my plan? As a Plan participant or beneficiary, you may request from your Plan Contact the following information about the Plan: (1) annual operating expenses of the Plan investments; (2) copies of prospectuses, financial statements, reports, or other materials relating to Plan investments; (3) a list of assets contained in each Plan investment portfolio; (4) the value of those assets and fund units or shares; and (5) the past and current performance of each Plan investment. Your Plan Contact: Maria Mosa National Home Health Care Corp. 700 White Plains Road, Suite 275 Scarsdale, NY (914) How do I receive my account statements? You will be ed each quarter when your account statement is available online at The statement shows your account balance, rate of return, contributions and investment allocations. If you are currently receiving your plan statements electronically and wish to receive them by mail, you may make this change either by calling our Member Service Center at (888) or by logging into your account and making this request online at You also have 24 hour access to your account through which is designed to give you current information about your account. You can get up-to-date information about your account balance, contributions, investment choices, and other Plan data. How may I direct my investments? The Plan is intended to be an ERISA Section 404(c) plan. This simply means that you may exercise control over some or all of the investments in your Plan account. The fiduciaries of the Plan may be relieved of liability, or responsibility, for any losses that you may experience as a direct result of your investment decisions. The investment choices available in the Plan are determined by National Home Health Care Corp.. You may provide investment directions for some or all of your account balance as determined by your Plan. Unless otherwise noted, you may make changes to your investments on a daily basis. What are the expenses associated with participating in the plan? Retirement plans have different types of expenses. As of May 21, 2015

19 Plan Information & Expenses National Home Health Care Corp. Savings and Stock Investment Plan Administration expenses - These are charges for services such as legal, accounting, recordkeeping, and, if applicable to this plan, investment advisory expenses. The Plan pays certain outside service providers for these administrative expenses. In any given year, the Plan Sponsor may elect at its own discretion to pay for some or all of these expenses, or to pay them from Plan forfeitures or a Plan recapture account. In your Plan, these expenses are paid partly by the Plan, partly by the Plan sponsor, and partly by participants. A participant's share of these expenses may be allocated on a pro rata basis. Your share of these expenses is based on the value of your account balance over the total assets in the Plan. Expenses may also be allocated on a per capita basis. Your share of these expenses is determined by dividing the expenses by the number of participants in the Plan. The cost for these expenses may vary from year to year. Your quarterly account statement will reflect any administrative fees charged to your account. Revenue sharing may offset some of the administration expenses of the Plan. In the absence of revenue sharing, a participant's share of these expenses might be higher. Individual expenses - These are expenses you may incur if you take advantage of certain Plan features. Loans - The following loan related expenses will be charged to your account: A $100 processing fee for each new loan will be charged to your account. A quarterly fee of $12.50 will also be charged to your account. In addition, you will pay interest back to your account at the Prime Rate plus Distributions - The following distribution related expenses will be charged to your account: A $65 processing fee for each distribution requested. Other Expenses - You may incur certain charges for special requests: Check reissuance fee: $50 Overnight mailing fee: $25 Wire transfer fee: $100 Recurring Installment Payment $6 Investment performance & expenses - The Fund Report includes important information to help you compare the investment options under your retirement plan. If you want additional information about your investment options, you can go to the specific Internet Website shown on our Fund Report or you can contact your Plan Contact. A free paper copy of the information available on the Website[s] can be obtained by contacting your Plan Contact. The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor s Website for an example showing the long-term effect of fees and expenses at Please visit for a glossary of investment terms relevant to the investment options under this plan. This glossary is intended to help you better understand your options. As of May 21, 2015

20 Fund Report Prepared for: National Home Health Care Corp. Data as of: 4/30/2015 Average Annual Total Returns Expenses Fund Ticker YTD 1 Year 5 Year 10 Year Since Incept Incept Date Net Exp. Net Exp. per $1,000 Stable Value: (0 Funds) MetLife Stable Value 403 GIC QBHEQ /30/ $12.70 See Attached Fund Factsheet Index: USTREAS T-Bill Auction Ave 3 Mon Blended Benchmark Nontraditional Bond: (494 Funds) BlackRock Strategic Income Opps Instl BSIIX /5/ $ Index: Barclays US Agg Bond TR USD Corporate Bond: (183 Funds) Delaware Corporate Bond Inst DGCIX /15/ $ Index: Barclays US Corp IG TR USD High Yield Bond: (799 Funds) Prudential High-Yield Z PHYZX /1/ $ Index: Barclays US Corporate High Yield TR USD Large Value: (1,437 Funds) JHancock Disciplined Value I JVLIX /2/ $ Index: Russell 1000 Value TR USD Large Blend: (1,644 Funds) Fidelity Spartan 500 Index Advtg FUSVX /14/ $ Columbia Contrarian Core R5 COFRX /9/ $ Index: S&P 500 TR USD Large Growth: (1,800 Funds) Fidelity Contrafund FCNTX /17/ $ Index: Russell 1000 Growth TR USD Mid-Cap Value: (511 Funds) MFS Mid Cap Value R4 MVCJX /1/ $ Index: Russell Mid Cap Value TR USD Mid-Cap Blend: (393 Funds) Fidelity Spartan Extnd Mkt Idx Advtg FSEVX /14/ $ Short term trading fees of 0.75 for shares held less than 90 days.** Index: Russell Mid Cap TR USD Mid-Cap Growth: (784 Funds) Prudential Jennison Mid Cap Growth Z PEGZX /31/ $ Index: Russell Mid Cap Growth TR USD

21 Fund Report Prepared for: National Home Health Care Corp. Data as of: 4/30/2015 Average Annual Total Returns Expenses Fund Ticker YTD 1 Year 5 Year 10 Year Since Incept Incept Date Small Value: (455 Funds) Delaware Small Cap Value Instl DEVIX /9/92 Index: Russell 2000 Value TR USD Small Growth: (765 Funds) Eagle Small Cap Growth R5 HSRSX /2/06 Index: Russell 2000 Growth TR USD Foreign Large Blend: (813 Funds) Fidelity Spartan Intl Idx Advtg FSIVX /14/05 Short term trading fees of 1.00 for shares held less than 90 days.** MFS International Value R4 MINHX /1/08 Index: MSCI ACWI Ex USA NR USD Foreign Large Growth: (353 Funds) American Funds EuroPacific Gr R4 REREX /7/02 Oppenheimer International Growth Y OIGYX /7/05 Index: MSCI ACWI Ex USA Growth NR USD Retirement Income: (189 Funds) JPMorgan SmartRetirement Income Select JSRSX /15/06 Index: Morningstar Lifetime Moderate Income Target Date : (259 Funds) JPMorgan SmartRetirement 2020 Select JTTSX /15/06 Index: DJ Target 2020 TR USD Target Date : (216 Funds) JPMorgan SmartRetirement 2025 Select JNSSX /1/07 Index: DJ Target 2025 TR USD Target Date : (259 Funds) JPMorgan SmartRetirement 2030 Select JSMSX /15/06 Index: DJ Target 2030 TR USD Target Date : (216 Funds) JPMorgan SmartRetirement 2035 Select SRJSX /1/07 Index: DJ Target 2035 TR USD Net Exp Net Exp. per $1,000 $9.70 $7.70 $1.20 $8.20 $8.40 $8.90 $6.80 $7.60 $7.90 $8.10 $8.30

22 Fund Report Prepared for: National Home Health Care Corp. Data as of: 4/30/2015 Average Annual Total Returns Expenses Fund Ticker YTD 1 Year 5 Year 10 Year Since Incept Incept Date Net Exp. Net Exp. per $1,000 Target Date : (258 Funds) JPMorgan SmartRetirement 2040 Select SMTSX /15/ $ Index: DJ Target 2040 TR USD Target Date : (216 Funds) JPMorgan SmartRetirement 2045 Select JSASX /1/ $ Index: DJ Target 2045 TR USD Target Date : (243 Funds) JPMorgan SmartRetirement 2050 Select JTSSX /1/ $ Index: DJ Target 2050 TR USD Target Date 2051+: (269 Funds) JPMorgan SmartRetirement 2055 Select JFFSX /31/ $ Index: DJ Target 2050 TR USD

23 Fund Report Prepared for: National Home Health Care Corp. Data as of: 4/30/2015 Disclaimer: ** The redemption fee is an amount charged when money is withdrawn from certain mutual funds. This fee does not go back to the fund company, but rather into the fund itself and thus does not represent a net cost to shareholders. Redemption fees typically operate in short, specific time clauses, commonly up to 365 days. However, some redemption fees exist for up to five years. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate and an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month end is available by calling or by visiting and logging into your account. Performance data is supplied by Morningstar, but in certain instances where Morningstar was unable to provide the data, Sentinel gathered information directly from the investment manager. Investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the investment company. A prospectus can be obtained by contacting your investment professional. The prospectus should be read carefully before investing. Index returns are unmanaged, do not reflect the deduction of any fees or expenses, and reflect all items of income, gain and loss, and the reinvestment of dividends and other income. Investors cannot invest directly in an index. For clients with Lifestyle Models managed by Sentinel Pension Advisors, returns and respective blended benchmarks are displayed. Model returns are calculated by Sentinel Pension Advisors based on monthly cash flows, fund performance and the linking of monthly return data. The Blended Benchmark represents a custom index comprised of six broad-based indexes: Barclay s 1-3 Yr Govt / Credit (Short-Term Fixed Income), Barclay s Aggregate Bond (Intermediate-Term Fixed Income), Russell 1000 (U.S. Large Cap Equity), Russell 2500 (U.S. Mid / Small Cap Equity), MSCI ACWI ex USA (Foreign Large Cap Equity) and Morningstar Multialternative (Alternative Investments). Each model is assigned into a category corresponding to the actual asset mix of the individual Lifestyle allocation. Category average represents the average return and expense ratio for all funds within a specific category. Securities offered through Sentinel Securities, Inc. Member FINRA & SIPC. Sentinel Pension Advisors, Inc. (SPA), a SEC-registered Investment Advisor, may act as the Investment Manager, Adviser or Investment Consultant to a Plan (Client). As the Investment Adviser, SPA will provide investment advisory services to the Client. As the Investment Consultant, SPA does not provide investment advice to the Client but does provide consulting services in accordance with the Investment Consulting Services Agreement entered into by the Client and SPA. Please note that SPA is not affiliated with the investment adviser providing investment advice to the Client. Date of first use: 5/7/2013 FC