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Comparison of Voluntary Retirement Plans
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Tax Sheltered Annuity (TSA) |
Deferred Compensation |
| IRS code |
403(b)
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457
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| Annual maximum deferral amount* |
Since 2001, employees may maximize their tax deferred savings by participating at the maximum levels in BOTH the Tax Sheltered Annuity and Deferred Compensation plans.
2008 Maximum deferral limits:
- < age 50 in plan year: $15,500 or 100% of includable compensation, whichever is less.
- >= age 50 in plan year: $20,500 or 100% of includable compensation, whichever is less.
("Includable compensation"- gross earnings less mandatory contributions to 401(a) retirement plan.)
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| Catch-up contributions* |
The lifetime catch-up provision provides that employees with at least 15 years of service and a history of low contributions may make additional contributions of up to $3,000 per year, subject to a $15,500 maximum on aggregate catch-up contributions. |
As an alternative to the age 50 catch-up, a 457 plan participant is eligible to defer up to twice the contribution limit in effect for the 3 years preceding the participant's normal retirement age. |
| Minimum contribution |
$15 per pay period |
$10 per pay period |
| Number of election changes allowed annually |
No limit |
Account distribution after employment ends
- Death
- separation,
- retirement, or
- permanent disability
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Requires Human Resources verification of separation from all Arizona University System employers. |
Requires Human Resources verification of separation. |
| Mandatory distribution |
Must begin distribution at age 70 or separation of employment, whichever is later. |
| In-Service Distribution (during employment) |
Available upon attainment of age 59½ |
Available under specific standards |
| Administration Fees** |
Vary by company |
Vary by investment fund |
| Loan provisions |
Vary by company |
Yes |
| Deferred sales charges |
Vary by company |
None |
| *Amounts are subject to IRS changes. |
**Administrative Fees include but are not limited to: front-end and back-end loads, commissions, transfer fees, management fees, wrap account fees, withdrawal charges. |
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© 2005, Arizona Board of Regents
University of Arizona | University Services Building, 888 N. Euclid Avenue, Room 114, Tucson, AZ 85721-0158
520.621.3662 (phone) | 520.621.9098 (fax) | Page last updated June 12, 2007
