457(b) Savings Plan
The 457(b) Savings Plan is designed to provide highly compensated faculty and staff of Boston University earning more than $180,000 with an additional tax deferred savings option.
In addition to the Boston University Retirement Plan and the Supplemental Retirement and Savings Plan, you may also accumulate funds for your future retirement (or other financial needs) through the Boston University 457(b) Savings Plan. This Plan is a non-qualified Plan under Section 457(b) of the Internal Revenue Code.
Under 2020 IRS limits, you may contribute up to an additional $19,500 to the Boston University 457(b) Savings Plan. Unlike the other plans, there are no catch-up contributions for those over the age of 50.
Non-qualified retirement plans are not required to meet IRS requirements for favorable tax treatment. Non-qualified plans can offer employees the opportunity to make additional pre-tax deferrals, but distributions cannot be rolled over to IRAs and plan assets are not held in a separate account. Plan assets are considered part of the sponsoring employer’s assets. The 457(b) Savings Plan is a non-qualified retirement plan.
In the event of Boston University insolvency, plan assets would be subject to claims of Boston University creditors.
You are eligible to participate in this plan if you are an employee of Boston University who has eligible annual base pay of at least $180,000. This earnings threshold for eligibility may be adjusted each year by Boston University. For purposes of this Plan, eligible pay is your current annual base salary or your total gross earnings from the prior calendar year.
Eligibility to participate in the 457(b) Savings Plan is determined on an ongoing basis. For example, to be eligible to participate as of November 2019, your salary must be at least $180,000 on November 1, 2019 or your total earnings for 2018 must be at least $180,000.