HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC 457(b) Employer Module Catalogue code:...
-
Upload
amberly-henry -
Category
Documents
-
view
217 -
download
2
Transcript of HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC 457(b) Employer Module Catalogue code:...
HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC
457(b) Employer ModuleCatalogue code: B14
Presentation or Module? Module
Slide numbers: B14-1 to B14-6
Registered/Non-Registered Usage: Allowed for all
Last update info:Date updated: 2015-04-01Project #25329Description of changes: Update contribution limits on #B14-3; update
cover slide, update background.
Filed with FINRA? No. If yes, date:
Notes:
457(b) Plans
457(b) PLANS
Prior to 2002 — contributions reduced by amounts contributed to a 403(b) or 401(k) plan
Beginning in 2002 — coordination of the limits with other plans were removed
Two separate contribution limits allow maximizing contributions to both tax-sheltered plans
B14-1
457(b) Contribution Limits
457(b) PLANS
Each year mirrors 403(b) and 401(k) salary reduction limits• Limit includes both elective and
non-elective contributions Within three years of retirement, may be
eligible for up to double the normal limits
B14-2
Tax Saving Example
457(b) PLANS
*Employees within three years of retirement may be able to contribute up to double the normal 457(b) limit.
B15-3
For employee age 50 or above in the 25% tax bracket, maximizing 2015 contributions
403(b) contribution $18,000
403(b) catch-up contribution $ 6,000
457(b) contribution $18,000*
Total contributions $42,000
2015 tax savings (@ 25%) $10,500
Eligibility for 457(b) Plans
457(b) PLANS
Employers — only non-qualified church-controlled organizations
Participants — at employer’s discretion Non-elective (employer) contributions,
any or all Elective (employee) deferrals, any or all No nondiscrimination testing
B14-4
Other Considerations
457(b) PLANS
Participation not limited to highly compensated employees
Flexible — select employees or open to all
Not subject to ERISA requirements Ability to designate minister’s housing
allowance at retirement
B14-5
Other Considerations
457(b) PLANS
Contributions considered general assetsof the employer
Separate accounting for each participant• Quarterly account statements provided• Access to account information online
or by calling the toll-free phone number Variety of benefit payment options
B14-6