457(b) Employee ModuleCatalogue code: B15

Presentation or Module? Module

Slide numbers: B15-1 to B15-5

Registered/Non-Registered Usage: Allowed for all

Last update info:Date updated: 2015-03-30Project #25328Description of changes: Update 2015 limits on #B15-3, update cover

slide, update background.

Filed with FINRA? No. If yes, date:

Notes:

HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC

457(b) Plans

457(b) PLANS

Prior to 2002 — contributions reduced by amounts contributed to a 403(b) or 401(k) plan

Beginning in 2002 — coordination of the limits with other plans were removed

Two separate contribution limits allow maximizing contributions to both tax-sheltered plans

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457(b) Contribution Limits

457(b) PLANS

Each year mirrors 403(b) and 401(k)salary reduction limits• Limit includes both elective and

non-elective contributions Within three years of retirement, may be

eligible for up to double the normal limits

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Tax Saving Example

457(b) PLANS

*Employees within three years of retirement may be able to contribute up to double the normal 457(b) limit.

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For employee age 50 or above in the 25% tax bracket, maximizing 2015 contributions

403(b) contribution $18,000

403(b) catch-up contribution $ 6,000

457(b) contribution $18,000*

Total contributions $42,000

2015 tax savings (@ 25%) $10,500

Other Considerations

457(b) PLANS

Contributions considered general assetsof the employer

Any employee can participate Ability to designate minister’s housing

allowance at retirement

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Other Considerations

457(b) PLANS

Separate accounting for each participant• Quarterly account statements provided• Access to account information online or by

calling the toll-free phone number Variety of benefit payment options

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