Plan Education

Retirement Plan Comparison

	401(k) Plan	403(b) Plan	457(b) Plan
Eligible Employers	Available to any employer other than a state or local government entity	Available to public education employers and non-profit tax-exempt organizations (e.g., schools, colleges & universities, churches, public hospitals & certain tax-exempt charitable organizations)	Available to a state or local government entity
Employee Eligibility	Employer may exclude certain employees, but plan must pass coverage & nondiscrimination tests	Plan must be "universally available" to employees	May cover both employees & independent contractors
Employee Contributions (2024)	Up to $23,500 in pre-tax traditional contributions (& Roth if the plan allows) Additional $7,500 catch-up contribution if age 50 or older	Up to $23,500 in pre-tax traditional contributions (& Roth if the plan allows) Additional $7,500 catch-up contribution if age 50 or older	Up to $23,500 in pre-tax traditional contributions (& Roth if the plan allows) Additional $7,500 catch-up contribution if age 50 or older
Employer Contributions	Matching contributions & profit sharing contributions are common. Click here to view your plan.	Permitted, but not common. Click here to view your plan.	Permitted, but not common. Click here to view your plan.
Distributions	Employee contributions may be taken after: Plan termination Age 59 1/2 Severance from employment Disability Death	Employee contributions may be taken after: Plan termination Age 59 1/2 Severance from employment Disability Death	Employee contributions may be taken after: Plan termination Age 59 1/2 Severance from employment Disability Death
10% Early Distribution Tax if Younger than Age 59 1/2	Yes	Yes	No
Loans & Hardship Distributions	Plan may allow loans. Plan may allow hardship distributions & will define "hardship."	Plan may allow loans. Plan may allow hardship distributions & will define "hardship."	Play may allow loans. Distributions may be available for “unforeseen emergencies.”
Required Minimum Distributions (RMDs)	You generally must begin taking annual distributions when you reach age 72	You generally must begin taking annual distributions when you reach age 72	You generally must begin taking annual distributions when you reach age 72

| TCG, a HUB International Company

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