403(b) & 457(b) Comparison

Pre-tax Retirement Savings Plans

 403(b)457(b)
Eligibility

All UC employees*

Same

Pre-tax Contributions?

Yes

Same

Tax-deferred Growth

Yes

Same

Administration Fees

No

Same

Investment Options

All

Same

Deferral Limits

2009: $16,500 or $22,000 if > age 50

Same

Contribution Method

% or flat dollar

Same

Catch-up Provision?

Yes

Same

Simultaneous Participation?

Yes

Same

In-Service Distributions

Yes, after age 59.5, Permanent Disability or Financial Hardship for six very specific reasons.

No; except in the case of unforeseeable financial emergency for very specific, very limited reasons.

Incoming Rollovers?

Yes, from 401(k), 403(b) and 457 public plans; not from a 457 private plan.

Same

LoansYesNot currently offered
Distribution After Separation from ServiceYes. A distribution can be requested 30 days after separation date.Same
Rollover EligibleYesSame
Early Distribution PenaltyYes; 10% federal and 2.5% state.No; except funds that were rolled into plan from a plan that was subject to penalty, i.e. 403(b).
Minimum Required Distributions - age 70.5Yes (unless actively employed)Same
How to EnrollGo to: http://www.netbenefits.fidelity.com or call Fidelity at 1-866-682-7787 (1-866-6UC-RSVP), M-F, 5 a.m. - 9 p.m. (PST)Same
Payroll Deduction Enrollment/Changes Deadlines (Changes in where money is invested can be made more quickly. Call Fidelity Retirement Services at 1-866-682-7787.)The deadline for the 403(b) and 457(b) are not the same. For 403(b), the deadline is different each month. Generally, if the request is processed 5 business days before the "pay-compute date," the change will be reflected in the next month's paydate. See the person in your department who handles payroll/benefits for the "pay-compute date."5 p.m. (PST) on the last business day of the month for next month's earnings. For example, 2-28 for March earnings which is the 4-1 paydate for monthly payroll (earlier paydate for bi-weekly payroll). Cancellations can be processed more quickly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Except students who normally work less than 20 hours per week.