Retirement Plans

What's the Elective Deferral limit to a 457b plan?

2018 limit = $18,500 (2015 - 2017 $18,000) not counting catch-up add-ons for 50+

Are the Defined Contribution Plans mutually exclusive as it relates to participation?

401(k) is. If you can participate in one, than the Employer is not eligible to offer the 403 or 457s. However, Employers qualified to offer 403(b) &/or 457(b) may offer one or both in addition to a Defined Benefit [retirement] plan, in which case, participation to more than one is only limited by the Employers preference/plan documents.

What's a catch-up add-on for a 457 plan?

Increases to the general annual contribution limit 457(b) plans of state and local governments may allow: -Participants who are aged 50 or older. -Starting 3 years prior to the normal retirement age (specified by plan) to contribute the lesser of: -2x Annual Limit ($37,000 in 2018 and 36,000 in 2015 - 2017), OR -Basic annual limit + the Amt. of basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions)

What is the difference between a 401k and a 403b retirement plan?

basic difference is that a 403b is used by nonprofit companies, religious groups, school districts, and governmental organizations. The law allows these organizations to be exempt from certain administrative processes that apply to 401k plans. In other words, administrative costs for a 403b are lower.

What's the max contribution to a 457b plan?

contributions and other additions (excluding earnings) to a participant's account cannot exceed the lesser of: 1)100% of the participant's includible compensation, OR 2)Elective deferral limit ($18,500 in 2018 and $18,000 in 2015 - 2017).

Who can participate in a 403b plan?

nonprofit companies, religious groups, school districts, and governmental organizations.

What is the most you can put in a 403b per year?

1)Under 50 yrs, maximum of $18,000 in 2016 2) 50 or older, + add catch-up contribution up to $6,000, = $24,000max. Limits adjust annually in line w/inflation.

What are the earliest age of distribution from each, 401(k), 403(b), 457(b)?

401(k)= 59 ½ 403(b)= 59 ½ 457(b)= 70 ½ (unless you no longer work there - then, any age)

What type of plan is a 457 F plan?

A 457(f) Non-Qual deferred comp arrangement = Non-Qual retirement plan. Gives the tax-exempt employer opty to supplement the retirement income by contributing to a plan that will be paid to the executive at retirement. Usually for select management group or highly comp'd EEs.

What is the difference between a qualified and nonqualified retirement plan?

Tax Benefits. Tax treatment is the main difference between qualified and non-qualified retirement plans. Non-qual plan: contributions are not deductible to the employer until the employee takes a withdrawal and is taxed on the income. Qualified Plan: Employer contributions may be deducted immediately.

What is a 457b plan?

The 457 plan is a type of nonqualified, tax advantaged deferred-comp retirement plan that is available for governmental and certain non-governmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pre-tax or after-tax (Roth) basis.

What is a Defined Benefit plan?

Usually refers to a retirement plan in which the Employer controls all investment risk & portfolio options. Contributions made by Employer only or Employer + EE. Employer determines EE vesting schedule. Money grows tax deferred.