Side by Side Comparison of
403(b) Tax Deferred Annuity Plan and
457(b) Deferred Compensation Plan
| |
403(b)
Effective January 1, 2012 |
457(b)
Effective January 1, 2012 |
|
Enrollment and Eligibility
|
|
Eligible employees
|
|
Class A - An Employee whose most recent and applicable appointment period is continuous and is employed and designated in a full-time employment class
|
|
Class B - Employees that are part-time or temporary can make employee deferral contributions to the Plan but will not receive an employer match.
|
|
Employees that have an appointment of 9 or 12 months or who are full-time, part-time, or temporary can make employee deferral contributions to the Plan
|
|
Employee deferrals
|
Must be whole percentage of eligible compensation. Only one vendor can receive contributions.
|
Must be a whole percentage of eligible compensation. Only one vendor can receive contributions at a time.
|
|
Matching contributions
|
Auburn will match dollar for dollar up to 5% of compensation with an annual cap of $1,650.
|
No employer contribution
|
|
Matching contribution vesting
|
5 year cliff
|
N/A
|
|
Elective deferral limit
|
Contribution must be a minimum of 1% of eligible compensation. A Participant who wishes to elect to defer 50% or more must first contact the Benefits Office.
|
Contribution must be a minimum of 1% of eligible compensation. A Participant who wishes to elect to defer 50% or more must first contact the Benefits Office.
|
|
Catch-up contributions
|
Age 50 Catch-up - Any participant who attains age 50 before the close of the calendar year can defer an additional pre-tax contribution of $5,500.
|
Age 50 Catch-up - Any participant who attains age 50 before the close of the calendar year can defer an additional pre-tax contribution of $5,500.
|
|
Number of outstanding loans
|
Limit loans to one outstanding loan at a time per Plan.
|
Limit loans to one outstanding loan at a time per Plan.
|
|
Hardship
|
Hardship are allowed from elective deferrals less earnings. Hardship is for immediate and heavy financial needs. Must receive all available loans before a hardship distribution can be approved. Can received for certain medical expenses, purchase of primary residence, payment of tuition & fees, to prevent eviction or foreclosure, funeral expenses and damages to primary residence.
|
Hardship not available but can receive distribution for unforeseeable emergency. Can receive for illness/accident, damage/loss of property, funeral expenses, foreclosure, medical expenses. Purchase of home or college tuition is not an unforeseeable emergency.
|
|
In-service distribution at age 59 1/2
|
Allowed at age 59 1/2
|
Allowed at age 70 1/2
|
|
Death
|
Allowed
|
Allowed
|
|
Disability
|
Allowed
|
Not allowed
|
|
Termination of Employment
|
Allowed
|
Allowed
|
|
Early Withdrawal Penalty
|
None if terminated on or after age 55, otherwise 10%
|
None
|
|
Purchase of permissive service credit
|
Service credits of the Retirement Systems of Alabama can be purchased with vested account balances.
|
Service credits of the Retirement Systems of Alabama can be purchased with vested account balances.
|
|
Companies
|
Lincoln Financial, Fidelity Investments, TIAA-CREF, VALIC
|
Fidelity Investments, TIAA-CREF, VALIC
|
|
