|
Home
Retirement
Supplemental
Retirement
457
457
The North Carolina Public Employee Deferred Compensation
Plan, provided under Section 457 of the Internal Revenue Code,
is available to all permanent University employees. The Plan,
as created by North Carolina State Statute, is overseen by
a Board of Trustees. The Plan's Board has contracted with
Benefits Corp. to be the Plan Administrator. Under this plan,
tax-sheltered contributions may be invested in either a fixed
return option or a variable return option. The State of North
Carolina owns the assets in the plan until distribution of
the account is made to the participant.
Contribution Limits
Catch-up Provisions
Make the most of 457 and 401(k)/403(b)
Learn more about the 457 plan
Contribution Limits
In 2003 the pre-tax contribution limit is $12,000 and increases
to $15,000 by the year 2006 as shown in the chart below.
Year
|
Regular Contribution
Limit
|
|
2003
|
$12,000
|
|
2004
|
$13,000
|
|
2005
|
$14,000
|
|
2006
|
$15,000
|
After 2006, these contribution limits may be increased to
factor in the effects of inflation.
Contribute as much as 100% of your compensation (less mandatory
before-tax contributions to a governmental 401(a) plan, if
any.
Enjoy increased and unique "catch-up" savings opportunities
if you’re approaching retirement.
If you’re within three years of normal retirement age, you
may be able to use the 457 plan’s unique "standard"
catch-up contribution and contribute even more each year.
If you’re “age 50+,” you can make additional catch-up
contributions ($2,000 in 2003) on a before-tax basis! Remember,
you may not use the "standard" catch-up and age
50+ catch-up in the same year.
457 Catch-up Contribution
Limits
|
Year
|
Age 50+ Catch-up
|
403(b) Lifetime
Catch-up
|
|
2002
|
$1,000
|
$3,000
|
|
2003
|
$2,000
|
$3,000
|
|
2004
|
$3,000
|
$3,000
|
|
2005
|
$4,000
|
$3,000
|
|
2006
|
$5,000
|
$3,000
|
Benefit from no 10% early withdrawal penalty (not available
through other plans).
Take advantage of a new tax credit, increased payout flexibility,
and much more.
Make The Most Of Your 457 AND 401(k)/403(b)
Plans
Prior to EGTRRA, employees who contributed to both a 457
and a 403(b)/401(k) plan were limited to a combined maximum
contribution of $8,500. Since January 1, 2002, 457(b) plan
participants have not been required to aggregate the contributions
they make to 403(b)/401(k) plans. Participants who contribute
to a 457(b) and a 403(b)/401(k) are allowed to contribute
the maximum amount permissible to both plans. However, maximum
combined deferral when contributing to 403(b) and 401(k) is
limited to the yearly maximum of the regular contribution
limit for either plan. Coordination is required between 403(b)
and 401(k).
Learn more about the 457 plan.
If you would like more information on the Deferred Compensation
Plan, you may call the Plan Administrator at 1-888-600-2763
or simply click on the link.
STATE OF
NORTH CAROLINA 457 DEFERRED COMPENSATION PLAN
Great West
Two Hannover Square, Suite 1640
Raleigh, NC 27601
1-888-600-2763
|
