403(b) and 457(b) Voluntary Retirement Savings Plans

KSU offers a 403(b) and 457(b) plan as voluntary retirement savings plans to supplement your TRS or ORP enrollment. These plans are available to part-time and full-time employees. You may elect to contribute pre-tax contributions to the 403(b) or 457(b) plans or after-tax Roth contributions to the 403(b) plan.

2022 Maximum Contribution Limit: $20,500
Age 50 Catch-up: additional $6,500

• Advantages to investing a 403(b) or 457(b) pre-tax Savings plan
  • Reduces current income tax liability;
  • Contributions and earnings grow tax-free;
  • If you think your tax liability is more now than what you think it will be in the future or upon retirement, a pre-tax savings plan may be more advantageous
• Advantages to investing in an after-tax Roth 403(b) plan
  • Since contributions are made after-tax, eligible retirement withdrawals are tax-free;
  • Earnings grow tax-free;
  • You may want to invest in this plan if you think your tax liability will be higher in the future than it is today or if you have a long time to invest until your retirement
• Should I invest in the 403(b) plan or 457(b) plan?

  403(b) plans allow more withdrawal options if you need to get money out prior to separation of service; penalties apply if you are under age 59 ½ except for loan withdrawals

  457(b) plans allow more withdrawal options after separation from service; penalties do not apply to withdrawals after separation of service

  Investment options are similar in both plans: 403(b) and 457(b) Plan Comparison Chart

• To Enroll

   

  Log-in to the Retirement @ Work portal through OneUSG Connect to enroll.