401(k) Plan (For comparison only)
| Who is eligible? | Employees whose employers offer the plan (private employers, some nonprofit employers) |
| Before-tax contributions? | Yes |
| Limits on employee contributions (2022) | Up to $20,500 |
| Age 50+ catch-up contributions | $6,500 |
| Other catch-up | No |
| Distributions while still employed (in-service distributions) | Only on hardship if under age 59 ½ |
| Distributions without tax penalties | Retirement after age 55
Death or disability
Payments after age 59 ½
Lifetime annuity or installments
Rollover to other qualified plan or IRA |
| Distributions with penalties4 | 10% prior to age 59 ½, except as above |
| Required minimum distributions | April 1 following the year participant reaches age 70 ½ |
| Tax treatment of distributions | Ordinary income tax |
| Loans | Yes, if plan permits |
| Rollovers to other plans5 | Yes — to 401(k), 403(b) or 457 plan Yes — to IRA |
403(b) Plan
| Who is eligible? | Employees of nonprofits such as public schools and some hospitals, charitable organizations |
| Before-tax contributions? | Yes |
| Limits on employee contributions (2022) | Up to $20,500 |
| Age 50+ catch-up contributions | $6,500 |
| Other catch-up | Yes — 15-year rule1 |
| Distributions while still employed (in-service distributions) | Only on hardship if under age 59 ½ |
| Distributions without tax penalties | Retirement after after 55
Death or disability
Payments after age 59 ½
Lifetime annuity or installments
Rollover to other qualified plan or IRA |
| Distributions with penalties4 | 10% prior to age 59 ½, except as above |
| Required minimum distributions | April 1 following the year participant reaches age 70 ½ |
| Tax treatment of distributions | Ordinary income tax |
| Loans | Yes, if plan permits |
| Rollovers to other plans5 | Yes — to 401(k), 403(b) or 457 plan Yes — to IRA |
457 Plan
| Who is eligible? | State and local government employees |
| Before-tax contributions? | Yes |
| Limits on employee contributions (2022) | Up to $20,500 |
| Age 50+ catch-up contributions | $6,500 |
| Other catch-up | Yes — final 3-year provision2 |
| Distributions while still employed (in-service distributions) | Only on account of unforeseeable emergency |
| Distributions without tax penalties | Termination of employment at any age
Death or disability
Unforeseeable emergency
Rollovers |
| Distributions with penalties4 | None while employed, and no 10% penalty upon termination |
| Required minimum distributions | April 1 following the year participant reaches age 70 ½ |
| Tax treatment of distributions | Ordinary income tax |
| Loans | Yes, if plan permits |
| Rollovers to other plans5 | Yes — to 401(k), 403(b) or 457 plan Yes — to IRA |
Roth 403(b) Plan
| Who is eligible? | Employees of nonprofits such as public schools and some hospitals, charitable organizations |
| Before-tax contributions? | No |
| Limits on employee contributions (2022) | Up to $20,500 |
| Age 50+ catch-up contributions | $6,500 |
| Other catch-up | Yes — 15-year rule1 |
| Distributions while still employed (in-service distributions) | Only on hardship if under age 59 ½ |
| Distributions without tax penalties | Age 59 ½ and have held account for at least five years
Death or disability
Other provisions same as 403(b) |
| Distributions with penalties4 | Same as 403(b) |
| Required minimum distributions | Same as 403(b) |
| Tax treatment of distributions | Tax-free if qualified distributions |
| Loans | Yes, if plan permits |
| Rollovers to other plans5 | To another designated Roth account, but only by direct rollover |
Roth 457 Plan
| Who is eligible? | State and local government employees |
| Before-tax contributions? | No |
| Limits on employee contributions (2022) | Up to $20,500 |
| Age 50+ catch-up contributions | $6,500 |
| Other catch-up | Yes — final 3-year provision2 |
| Distributions while still employed (in-service distributions) | Only on account of unforeseeable emergency |
| Distributions without tax penalties | Termination of employment at any age3
Unforeseeable emergency3
Death or disability
Rollover to another designated roth account or Roth IRA |
| Distributions with penalties4 | None |
| Required minimum distributions | Same as 457 |
| Tax treatment of distributions | Tax-free if qualified distributions |
| Loans | Yes, if plan permits |
| Rollovers to other plans5 | To another designated Roth account, but only by direct rollover |
1 Eligible employees with 15 or more years of full-time service may be able to contribute up to $3,000 more for five years or maximum of $15,000.
2 May be eligible to defer up to two times the contribution limit in effect for the final three years of service. Employees cannot participate in the 3-year catch-up and the 457 plan age 50+ catch-up during the same tax-year.
3 Ordinary income taxes may be due if not a qualified distribution, generally after age 59 ½ and have held an account at least five years.
4 May also be subject to income taxes as noted below.
5 Rollover may be subject to restrictions by vendor and the school district plan sponsor.
