403(b) vs. 457
A Side-by-side Comparison Chart
403(b) vs. 457 Plan Comparison Chart
|Eligible Participants||All employees of FCPS are eligible to participate.||All FCPS full-time and part-time salaried employees are eligible to participate.|
|Contribution Limits||In 2020, the maximum contribution amount is 100% of your compensation or $19,000, whichever is less.|
|Standard Catch-up Contributions||n/a||For the three consecutive years prior to your normal retirement age, you may be able to contribute up to twice the available limit if you under-contributed in prior years.1|
|Age 50+ Catch-up||Participants turning age 50 or older in 2020 may contribute an additional $6,000.1|
|Loans Permitted?||Yes. They must be approved by TSACG, the Plan’s third-party administrator. You can borrow the lesser of $50,000 or 50% of your total account balance. The minimum loan amount is $1,000.||Yes. You can borrow the lesser of $50,000 or 50% of your total account balance. The minimum loan amount is $1,000.|
|Distributions2||Retirement, permanent disability, financial hardship3, severance of employment3, attainment of age 59½, death (upon which your beneficiary receives your benefits), transfer to purchase service credit.||Retirement, unforeseeable emergency3, severance of employment3, attainment of age 70½, death (upon which your beneficiary receives your benefits), transfer to purchase service credit.|
|Rollovers||Approved balances from a 401(a), 401(k), 403(b) and governmental 457(b) plan or an IRA may be rolled over.
You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options.
|403(b) Contract Exchanges||Will accept monies from current or former/deselected 403(b) providers.||n/a|
|For more information on Plan details, refer to the each vendor's microsite.|
1 This additional contribution is not a combined limit between 457(b) and/or 403(b) plans. The Age 50+ Catch-up contribution provision may not be used in the same year as the Standard 457 Catch-up contribution provision.
2 Withdrawals may be subject to ordinary income tax. Withdrawals made prior to age 59½ may incur a 10% early withdrawal penalty. The 10% early withdrawal penalty does not apply to 457(b) plan withdrawals.
3 As defined by the Internal Revenue Code.