|Eligible||Employees of private employers, some non-profit employers, and churches||Public schools, colleges, universities, church affiliated entities and 501(c)(3) organizations.||State and local governments or 501(c) organizations.|
|Yes (only 457(b) governmental plans)|
|Age 50+ catch-up contributions||Yes|
|Additional catch up||No||Yes - 15-year rule**||Yes - last 3 years rule***|
|Limitations on deferrals||Lesser of Internal Revenue Code (IRC) dollar limit ($20,500 for 2022; $22,500 for 2023) or 100% of compensation||Lesser of IRC dollar limit ($20,500 for 2022; $22,500 for 2023) or 100% of compensation|
|Limitations on total contributions||Lesser of IRC dollar limit ($61,000 for 2022; $66,000 for 2023) or 100% of compensation||Lesser of IRC dollar limit (20,500 for 2022; $22,500 for 2023) or 100% of compensation.
Limit not coordinated with 401(k) and 403(b) limit.
|Distributions while employed||Only on hardship; age 59 ½ or older||Only on account of unforeseeable emergency; age 59 ½ or older
|Distributions without tax penalty****||
||Not subject to 10% penalty with exception of amounts rolled over from plans that are subject to penalty taxes.|
|Distributions with tax penalty****||
||Amounts rolled over from other retirement plans may be subject to the penalty, if distributed prior to age 59 ½ (unless another IRC exception applies)|
|Required minimum distributions||April 1st, following the later of the year in which you become age 72, or the year in which you retire (if plan permits). SECURE 2.0 has updated this age to 73 effective January 1, 2023. Anyone who turned 72 before December 31, 2022, is not affected by this change.|
|Rollovers||Yes, if allowed by the Plan, but not required
|Transfers||Yes, if allowed by the Plan, but not required
*We do not provide administrative services for these plans.
**Eligible employees with 15 or more years of full-time service may be able to contribute up to $3,000 more for 5 years, or a maximum of $15,000.
***May be eligible to defer up to 2 times the annual contribution limit in effect over the final 3 years of service. Employees cannot participate in the 3-year-catch-up and the 457(b) Plan age 50+ catch-up during the same tax year.
****The IRC imposes a 10% additional tax penalty on certain early distributions from certain retirement plans.