Human Resources

Administration Division

SAVE MORE

Learn all about your retirement benefits and use the checklists on each page to help you prepare for retirement.

SAVE MORE

403(b) vs. 457(b)

For additional retirement savings, you may elect to choose to contribute to the 403(b) or 457(b) plan or both, which provide options for deferring pretax (and in some cases after-tax) income for retirement saving. What chiefly distinguishes the plans are how they consider and penalize withdrawals.

CALCULATOR

403(b) VS. 457(b)

403(b)

457(b) Governmental

ELIGIBILITY

All exempt and non-exempt employees with the exception of student workers may enroll at anytime during employment

All exempt and non-exempt employees with the exception of student workers may enroll at anytime during employment

CONTRIBUTION RATE

Employee elective deferrals

$19,000 in 2019

Age 50 or over + $6,000 (2018)

Employee elective deferrals

$19,000 in 2019

Age 50 or over + $6,000 (2018)

BENEFIT AT RETIREMENT

Account balance accumulated at the time of retirement

Account balance accumulated at the time of retirement

VESTING

Immediately 100% vested (retain ownership interest)

Immediately 100% vested (retain ownership interest)

LOANS

Loans may be permitted

Loans may be permitted

WITHDRAWALS

Withdrawals permitted after a distributable event occurs (e.g., retirement, death, disability, severance from employment)

Inservice withdrawls are allowed at age 59 1/2

Providing that the employee is no longer working, you must begin receiving distributions by April 1 following the later of year of retirement or attainment of age 70½

Hardship withdrawals permitted

Early withdrawals subject to 10% additional tax

In service withdrawals can be used for TRS service purchase

Withdrawals permitted after severance from employment

Providing that the employee is no longer working, you must begin receiving distributions by April 1 following the later of year of retirement or attainment of age 70½

Distribution for unforeseen emergencies allowed

Early withdrawals prior to age 59 ½ are not subject to 10% additional tax

In service withdrawals can be used for TRS service purchase

ROLLOVERS / TRANSFERS

Rollovers permitted to an eligible retirement plan

Transfers permitted from one 403(b) to another 403(b)

Rollovers permitted to an eligible retirement plan

Transfers permitted from one government 457(b) to another government 457(b)

HOW TO ENROLL

To enroll in the 403(b) or 457(b) plans, log on to OneUSGConnect.usg.edu and the USG faculty & Staff Portal. From there you will be able to choose My Retirement@work.

  1. Click Enroll Now on the Retirement@Work home page.
  2. If you want to contribute to one or both voluntary plans, choose how much you’d like to contribute per pay period as a dollar amount, percentage or the maximum contribution amount, and indicate when you want contributions to start.
  3. If you don’t want to contribute to either voluntary plan, you may click on the link in the blue box “Continue to ORP vendor selection without additional contributions.”
  4. Choose if you want to direct all contribution types (e.g., employer and employee pretax and Roth) to the same investment provider(s). Then enter the amount that should go to each provider.
  5. Open an account with the investment provider(s) you selected and choose your investments to complete the enrollment process.
  6. For instructions on how to open an account with TIAA, Fidelty, or AIG/VALIC go to retirement.usg.edu and click on the corresponding provider link under Vendor Information.