|
457 plan |
403(b) plan |
Maximum limits on elective deferrals-under age 50 |
2007 - $15,500* *Does not include traditional catch-up contributions allowed for 457 plans |
2007 - $15,500* *Does not include traditional catch-up contributions allowed for 403(b) plans |
Maximum limits on elective deferrals - age 50 or older? |
2007 - $20,500* *Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 457 plans |
2007 - $20,500* *Includes EGTRRA catch-up contribution; does not include traditional catch-up contributions allowed for 403(b) plans |
Maximum limits on total contributions? |
Lesser of 100% of compensation or $45,000 (indexed to inflation in $1,000 increments) for 2007 |
Lesser of 100% of compensation or $45,000 (indexed to inflation in $1,000 increments) for 2007 |
Participant loans allowed? |
Not allowed, however IRS recently announced they would reconsider this decision |
Yes |
Hardships allowed? |
Yes, only for immediate and unforeseeable events; excludes hardship distributions for purchase of a residence, ordinary consumer debt, and education expenses. |
No |
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 withholding at time of deferral |
FICA 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 |