 |
457(b) |
403(b) |
| Contribution Limits & Coordination of Contribution
Limits |
$16,500 maximum contribution
plus catch-up options
457 limits no longer reduced by 403(b) contributions |
$16,500 maximum contribution plus catch-up
options
403(b) limits no longer reduced by 45 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. |
Employer control is limited and most administration
handled by issuers and custodians |
| Eligibility Rules |
No discrimination rules apply – employer
defines and limits eligibility |
Discrimination rules apply – deferrals
available to all eligible employees (contribution $200/year) |
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
of same employer (other than 457) even if special catch-up
option used |
| Special Catch-up Option |
Three years prior to normal retirement age
allows the lesser of:
Two times current year’s normal contribution
limit; or
Underutilized limits from past years |
Fifteen years of service option increases
limited by the lesser of:
$3,000;
$15,000 less additional limit used in past years; or
Excess of $5,000 times years of service less past elective
deferrals |
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 |
| Loan |
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 apply at age 70½ or later,
severance from service, and also after death |
RMD Rules apply at age 70½ or later,
severance from service, and also after death. |
