 |
457(b) |
403(b) |
| Contribution Limits & Coordination of Contribution
Limits |
$16,500 maximum contribution
plus catch-up options
457(b) limits no longer reduced by 403(b) contributions |
$16,500 maximum contribution plus catch-up
options
403(b) limits no longer reduced by 457(b) contributions |
| Early Withdrawal Penalty Tax |
None – (normal income tax only) |
10% early withdrawal penalty tax may apply
under age 59½, plus normal income tax |
| Employer control |
Employer responsible for administration. |
Employerresponsible for administration as of January 1, 2009. |
| Eligibility Rules |
Discrimination rules do not apply. |
Discrimination rules apply – Universal Availability Rule |
Age 50+ Catch-Up Option* |
Total of $5,500 for all 457 plans of same
employer (not available if special catch up option used) |
Total of $5,500 for all retirement plans. |
| Special Catch-up Option* |
Three years prior to normal retirement age.
|
Fifteen years of service option if permitted in the Written Plan.
|
Purchase Transfer to SRS Service* |
Available |
Available |
| Distribution Restrictions |
Funds cannot be distributed until:
Age 70½ if still working
Severance from employment at any age,
Disability;
Death; or
Unforeseeable emergency |
Funds cannot be distributed until:
Age 59½
Severance from employment;
Disability
Death; or
Financial Hardship |
Portability of Plan Funds After Qualifying
Event |
Funds can be rolled over to:
Another Governmental 457;
403(b) TSA;
IRA (Traditional, SEP, SAR-SEP); and
401(a) Plan (Pension, Profit Sharing, 401(k), STRS) |
Funds can be rolled over to:
Another 403(b);
Governmental 457;
IRA (Traditional, SEP, SAR-SEP); and
401(a) Plan (Pension, Profit Sharing, 401(k), STRS |
| Hardship Distributions |
Contributions and earnings may be distributed
to the extent required for an unforeseeable emergency beyond
control of participant, such as:
Medical care;
Casualty loss; or
Payments needed to prevent eviction from foreclosure
on home |
Contributions (but not earnings) may be distributed
to extent required for a financial hardship even if foreseeable
and voluntary, such as:
Medical care;
Payments needed to prevent eviction from or foreclosure
on home;
Payment of tuition; or
Purchase of a home |
| Participant Loans* |
Permitted, with loans from all qualified
plans limited to the lesser of:
$50,000; or
One-half of vested benefits (or $10,000, if greater) |
Permitted, with loans from all qualified
plans limited to the lesser of:
$50,000; or
One-half of vested benefits (or $10,000, if greater |
| Required Minimum Distribution |
RMD Rules have been suspended for plan year 2009. |
RMD Rules have been suspended for plan year 2009. |
* Transactions available if permitted by the Written Plan.
