Comparing the Plans

The 457(b) Savings Plan has similar features and benefits to the Boston University Retirement Plan and the Supplemental Retirement and Savings Plan. However, there are some legal differences between the Boston University Retirement Plan, the Supplemental Retirement and Savings Plan, and the non-qualified 457(b) Savings Plan, as described in the following chart:

BU Retirement Plan and Supplemental Retirement and Savings Plan

457(b) Savings Plan

Voluntary pre-tax contributions
Any amount, up to the IRS limit currently $18,000 if you are under the age of 50 and $24,000 if you are age 50 or older Any amount, up to the current IRS limit of $18,000
Roth contributions
Permitted Not permitted
Age 50 catch-up contributions
Permitted Not permitted
Investments
Participant-directed investments. TIAA-CREF
annuity contracts and Fidelity Brokerage are available.
Participant-directed investments. TIAA-CREF funds and Fidelity Brokerage are not available.
Loans
Permitted from the Supplemental Retirement
and Savings Plan only
Not permitted
In-service withdrawals
Permitted from Supplemental Retirement and Savings Plan account balance if at least age
59½ or certain conditions of financial hardship
Not permitted
Rollovers to the Plan
Yes, permitted from another employer’s eligible plan Not permitted
Rollovers from the Plan
Yes, permitted to another employer’s eligible plan or an IRA Only permitted to another employer’s 457(b) plan
Payment options
Lump sum, annuity, or installments over a period of years, depending on investment fund Lump sum or installments over a period of up to 5 years. Participant must finalize payment election within 120 days of termination
Payment commencement
Any time following employment termination,
at participant’s direction
Participant must finalize payment election or defer payment to a later date within 120 days of termination of employment
Benefits must commence by age 70 1/2
Yes, unless participant is actively employed by Boston University Yes, unless participant is actively employed by
Boston University
Penalty for distribution prior to age 59 1/2
Yes, generally a 10% tax  penalty applies to early distributions (certain exceptions may apply) No penalty
Protection of plan assets
Assets protected from Boston University credit risk In the event of Boston University insolvency,
plan assets would be subject to claims of Boston University creditors