Human Resources » Benefits & Retirement » Deferred Compensation » Compairson of Plans

Comparison of Deferred Income Plans

PLAN     401(k) 401(k) ROTH 403(b) 457 COMPARED TO ROTH IRA
OWNERSHIP AND VESTING Account in Employee's name- 100% immediate vesting Account in Employee's name- 100% immediate vesting Account in Employee's name- 100% immediate vesting Account in Employee's name- 100% immediate vesting Account in Employee's name- 100% immediate vesting
MAXIMUM ANNUAL CONTRIBUTIONS Lesser of 100% of salary or $17,500.
$23,000 for employees 50 or over.
401(k) & 403(b) combined total limit.
Lesser of 100% of salary or $17,500.
$23,000 for employees 50 or over.
401(k) & 403(b) combined total limit.
Lesser of 100% of salary or $17,500.
$23,000 for employees 50 or over.
401(k) & 403(b) combined total limit.
Lesser of 100% of salary or $17,500.
$23,000 for employees 50 or over.
INCOME LIMITS:
MARRIED COUPLES $178,000.
SINGLE $112,000
DEFERRED INCOME COMPANIES
[top]
Mutual funds and fixed accounts authorized by the State of Tennessee. Mutual funds and fixed accounts authorized by the State of Tennessee. Ameriprise Financial, Fidelity Investments, ING, TIAA-CREF, and VALIC. Mutual funds and fixed accounts authorized by the State of Tennessee. Mutual funds and fixed accounts (not provided by the university
ROLLOVERS Rollover allowed. Rollover allowed. Rollover allowed. Rollover allowed. Rollover allowed.
CATCH-UP PROVISIONS Not available Not available Available Available Not available
LOAN PROVISIONS
Available- contact Great West Available- contact Great West Not available Not available  Not available
AGE BENEFITS MUST BEGIN
[top]
April 1 of the calendar year following the year in which the participant either attains age 70 1/2 or retires, whichever comes later. April 1 of the calendar year following the year in which the participant either attains age 70 1/2 or retires, whichever comes later. April 1 of the calendar year following the year in which the participant either attains age 70 1/2 or retires, whichever comes later. April 1 of the calendar year following the year in which the participant either attains age 70 1/2 or retires, whichever comes later. No requirement to start taking distributions.
LIFETIME RETIREMENT INCOME Amount of income depends upon value of accumulation, age at retirement, method of payment selected, and other factors. Amount of income depends upon value of accumulation, age at retirement, method of payment selected, and other factors. Amount of income depends upon value of accumulation, age at retirement, method of payment selected, and other factors. Amount of income depends upon value of accumulation, age at retirement, method of payment selected, and other factors. Amount of income depends upon value of accumulation, age at retirement, method of payment selected, and other factors.
TAXABILITY
[top]
Pre-Tax Contributions - Investment growth is not subject to Federal and most State income taxes until funds are withdrawn. After-Tax Contributions- Investment growth accumulates without any tax consequences. Pre-Tax Contributions - Investment growth is not subject to Federal and most State income taxes until funds are withdrawn. Pre-Tax Contributions - Investment growth is not subject to Federal and most State income taxes until funds are withdrawn. After-Tax Contributions- Investment growth accumulates without any tax consequences.
TAX-FREE EXCHANGES Tax-Free exchange allowed N/A Tax-Free exchange allowed Tax-Free exchange allowed N/A
TAXES ON LUMP-SUM DISTRIBUTIONS Taxable in the year received Taxable in the year received Taxable in the year received
WITHDRAWALS - Without Penalty 1. Age 59 ½
2. Death
3. Disability
4. Separation from service at age 55 or older
5. Distributions paid in the form of a lifetime annuity
6. Medical expenses to the extent deductible (above 7.5% of AGI)
All withdrawals are taxed as ordinary income upon receipt.
1. Age 59 ½
2. Death
3. Disability
4. Separation from service at age 55 or older
5. Distributions paid in the form of a lifetime annuity
6. Medical expenses to the extent deductible (above 7.5% of AGI)

All withdrawals are taxed as ordinary income upon receipt.
1. Age 59 ½
2. Death
3. Disability
4. Separation from service at age 55 or older
 5. Contributions/ earnings credited to a 403(b) before 1/1/1989, at any time.

All withdrawals are taxed as ordinary income upon receipt.
1. Seperation from Service
2. Disability 
3. Death 
         
No 10% penalty tax for distributions of 457(b) money taken prior to age 59 1/2 if separated from service.     

All withdrawals are taxed as ordinary income upon receipt.
1. Age 59 ½
2. Death
3. Disability
4. Separation from service at age 55 or older

All withdrawals are taxed as ordinary income upon receipt.
WITHDRAWALS - With 10% Penalty 1. Separation from service with age under 59 1/2
2. Extreme unforeseen financial hardship (limited to employee contributions).
Must be approved by the State of Tennessee Hardship Withdrawal Review Committee
All withdrawals are taxed as ordinary income upon receipt.
1. Separation from service with age under 59 1/2
2. Extreme unforeseen financial hardship (limited to employee contributions).
Must be approved by the State of Tennessee Hardship Withdrawal Review Committee

All withdrawals are taxed as ordinary income upon receipt
All withdrawals are taxed as ordinary income upon receipt. A 50% excise tax applies if minimum required distributions are not taken before April 1 of the year following the attainment of age 70 1/2 or retirement, if later.
 
All withdrawals are taxed as ordinary income upon receipt.
10% penalty