457(b) Deferred Compensation Plan Overview

457(b) Deferred Compensation Plans are employer sponsored retirement plans that allow pre-tax contributions from your salary and tax-deferred growth of your account value. Review the Internal Revenue Code bulletin concerning 457 Plans.

Employee Contribution $$$

Tax Year	Annual Contribution Limit	Age 50 Catch-up Limit
2004	$13,000	$3,000
2005	$14,000	$4,000
2006	$15,000	$5,000
2007	$15,500	$5,000
2008	$15,500	$5,000
2009	$16,500	$5,500

Employees in the last three (3) calendar years prior to attainment of the Normal Retirement Age (as stated in your employer's Plan Document) may utilize the special catch-up provision which may allow you to contribute up to 200% of the Annual Contribution Limit (subject to a calculation to determine eligibility).

Starting in 2002, any contribution you make to a 457(b) Plan does not offset your contribution limits to other plans such as a 403(b), 401(k) or SEP IRA. In other words, you may make a full contribution to a 457(b) Plan as well as full contribution to a 403(b) Plan.

Another feature that is unique to a 457(b) Deferred Compensation Plan, is the qualified distributions are not subject to a 10% federal excise tax (penalty) for distributions at any age! Plans such as 403(b), 401(k), IRA, in general are subject to the federal excise tax when distributions occur prior to age 59 1/2, or if separation from service occurs prior to age 55. This feature of the 457(b) Plan may provide you with added flexibility of accessing your funds in case of early retirement or transition to another employer.