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
Contributions
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.
Distributions
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.
Providers
Companies Lincoln Financial, Fidelity Investments, TIAA-CREF, VALIC Fidelity Investments, TIAA-CREF, VALIC

Payroll & Employee Benefits
212 Ingram Hall      Auburn University, AL 36849      Phone 334-844-4183      Fax 334-844-1799

Auburn University | Auburn, Alabama 36849 | (334) 844-4000
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