Comparison of Tax Deferred Retirement Savings Programs at NC State University

Description

403(b) 403(b)(7) 401(k) Deferred Compensation Plan 457
Eligibility

Employees subject to FICA withholdings
 (social security/medicare)

Employee must contribute to TSERS or ORP to be eligible for 401(k) participation Non-temp employment status at .5 FTE (working 20 or more hours per week)
Minimum Contribution $200.00 per calendar year$20.00 per month
Maximum Annual Contribution For all plans except the 401(k), 100% of taxable income not to exceed $16,500 in 2009 (401(k) limit is 80% of taxable income). Additional plan specifications may apply.
Plan AggregationCombined, contributions to the 401(k), 403(b) and 403(b)(7) plans cannot exceed the maximum annual contribution limit No rules apply; contributions are in addition to those made to 401(k) and/or 403(b) plans.
Catch-up Provisions Participants who attain age 50 by the end of a plan year may defer an additional $5,500 in 2009. Participants who attain age 50 by the end of a plan year may defer an additional $5,500 in 2009.
Loan Provisions The 401(k), 403(b) and 457 plans include loan provisions.
Early WithdrawalGenerally, all plans provide for early withdrawal options based on specific circumstances. Additional provisions apply depending on the plan including taxes and penalties for early distributions.
Minimum Withdrawal AgeWithdrawals prior to age 59 ½ are subject to a 10% early distribution penalty. Other penalties for early withdrawal may apply. Withdrawal after termination of employment is not subject to penalty, regardless of age.
Minimum Required DistributionPlan participants must commence a minimum distribution no later than April 1st of the year following the date on which the participant attains age 70 ½. Minimum required distributions are not required for participants who are actively employed at age 70 ½.
Portability Provisions Generally, rollovers and transfers to other qualified plans and Individual Retirement Accounts are allowed upon termination of employment/retirement. Depending on the plan type, limitations may apply. Plan rules determine portability and transferability of accounts; typically, the most flexibility is within the 401(k) and 457 plans