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457 plan |
403(b) plan |
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Maximum limits on elective deferrals-under age 50 |
2011 - $16,500* *Does not include traditional catch-up contributions allowed for 457 plans |
2011 - $16,500* *Does not include traditional catch-up contributions allowed for 403(b) plans |
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Maximum limits on elective deferrals - age 50 or older |
2011 - $22,000* *Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 457 plans |
2011 - $22,000* *Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 403(b) plans |
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Maximum limits on total contributions? |
Lesser of 100% of compensation or $49,000 (indexed to inflation in $1,000 increments) for 2011 |
Lesser of 100% of compensation or $49,000 (indexed to inflation in $1,000 increments) for 2011 |
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Participant loans allowed? |
Not allowed, however IRS recently announced they would reconsider this decision |
Yes |
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Hardships allowed? |
Yes, only for immediate and unforeseeable events; excludes hardship distributions for purchase of a residence, ordinary consumer debt, and education expenses. |
Yes |
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Penalty for distribution prior to age 59 ½? |
No |
Yes, 10 % penalty |
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Minimum Distribution Requirements? |
Later of 1) April 1 following the calendar year employee attains age 70 ½ or 2) calendar year following retirement |
Later of 1) April 1 following the calendar year employee attains age 70 ½ or 2) calendar year following retirement |
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Social Security Withholding |
FICA/Medicare withholding at time of deferral |
FICA/Medicare withholding at time of deferral |
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Taxation of Benefits? |
Taxed as ordinary income in the year received |
Taxed as ordinary income in the year received |
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Can defer taxes on distributions by rolling them into a plan of the same type or an IRA? |
Yes |
Yes |
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Can defer taxes on distributions by rolling them into a plan of different type? |
Yes |
Yes |
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ERISA coverage? |
No |
No |
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Non-Discrimination Rules? |
None |
None |
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Top heavy rules apply? |
No |
No |