457 plan

 

403(b) plan

Maximum limits on elective deferrals-under age 50

2013 - $17,500*

*Does not include traditional catch-up contributions allowed for 457 plans

2013 - $17,500*

*Does not include traditional catch-up contributions allowed for 403(b) plans

Maximum limits on elective deferrals - age 50 or older

2013 - $23,000*

*Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 457 plans

2013 - $23,000*

*Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 403(b) plans

Participant loans allowed?

No

Yes

Hardships allowed?

Yes, only for immediate and unforeseeable events; excludes hardship distributions for purchase of a residence, ordinary consumer debt, and education expenses.

Yes

Penalty for distribution prior to age 59 ½?

No

Yes, 10 % penalty

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

Social Security Withholding

FICA/Medicare withholding at time of deferral

FICA/Medicare withholding at time of deferral

Taxation of Benefits?

Taxed as ordinary income in the year received

Taxed as ordinary income in the year received

Can defer taxes on distributions by rolling them into a plan of the same type or an IRA?

Yes

Yes

Can defer taxes on distributions by rolling them into a plan of different type?

Yes

Yes

ERISA coverage?

No

No

Non-Discrimination Rules?

None

None

Top heavy rules apply?

No

No