Retirement Frequently Asked Questions

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We’ve collected some of the most frequently asked questions about our products and services, and grouped them by topic to make it easier for you to access the information you need to make informed financial decisions.

 

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403(b) | 457(b) | Back to all FAQs

 

403(b)

FAQ FAQs

  • What is the difference between a 457(b) plan and a 403(b) plan?

    Both types of plans are tax deferred, but with the 457(b), you may withdraw when you leave your employer, or in the case of death, disability or unforeseen emergency, regardless of your age. Whereas with the 403(b), you can receive your distributions at age 59½, upon severance of employment or become fully disabled.

  • What is the difference between a 403(b) plan and a Roth 403(b) plan?

    With a 403(b), contributions are made pre-tax. Taxes are then paid on withdrawals, typically in retirement when you will likely be in a lower tax bracket. With a Roth 403(b), your contributions are made after taxes have been paid, and then withdrawals taken within the limits of your plan are tax-free.

  • Are there any additional contribution catch-up provisions for the 403(b) plan?

    Depending on your district plan, the 403(b) may have a 15 year service catch-up which may add up to $3,000 annually for 5 years. You must qualify every year through your district’s administrator.

  • How much can I contribute to a 403(b) plan?

    In 2019, you may contribute up to $19,000 to a 403(b) and/or Roth 403(b). If you are over age 50, you may contribute an additional $6,000 annually. This limit is combined for both plans.

  • Can I transfer my 403(b) plan at any time?

    Yes. If you are still employed, you may transfer your 403(b) between eligible 403(b) providers. If you are no longer employed or otherwise meet a qualifying event, you become eligible to roll funds over to an IRA or other eligible retirement plan.

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457(b)

FAQ FAQs

  • How much can I contribute to a 457(b) plan?

    In 2019, you may contribute up to $19,000 to a 457(b). If you are over age 50, you may contribute an additional $6,000 annually. This limit is separate from the 403(b) limit.

  • What is the difference between a 457(b) plan and a 403(b) plan?

    Both types of plans are tax deferred, but with the 457(b), you may withdraw when you leave your employer, or in the case of death, disability or unforeseen emergency, regardless of your age. Whereas with the 403(b), you can receive your distributions at age 59½, upon severance of employment or become fully disabled.

  • Are there any additional contribution catch-up provisions for the 457(b) plan?

    Depending on your district plan, you may be able to add an additional $19,000 in addition to the standard limit of $19,000. This cannot be used with the age 50+ catch-up provision. This catch-up is used during your final 3 years before retirement age (deemed as age 62 or 65, depending on your district plan). You must qualify every year through your district’s administrator.

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