403(b) vs. 457(b)
A Side-by-side Comparison Chart
403(b) vs. 457 Plan Comparison Chart
| 403(b) | 457(b) | |
| Eligible Participants | All employees of FCPS are eligible to participate. | All FCPS full-time and part-time salaried employees are eligible to participate. |
| Contribution Limits | In 2025, the maximum contribution amount is 100% of your compensation or $23,500, whichever is less. | In 2025, the maximum contribution amount is 100% of your compensation or $23,500, whichever is less. |
| Standard Catch-up Contributions | n/a | For the three consecutive years prior to your normal retirement age, you may be able to contribute up to twice the available limit if you under-contributed in prior years.1 |
| Age 50-59, 64+ Catch-up | Participants turning age 50 or older in 2025 may contribute an additional $7,500.1 | Participants turning age 50 or older in 2025 may contribute an additional $7,500.1 |
| Age 60-63 Catch-up | Participants turning age 60-63 in 2025 may contribute an additional $11,250.1 | Participants turning age 60-63 in 2025 may contribute an additional $11,250.1 |
| Loans Permitted? | Yes. They must be approved by TSACG, the Plan’s third-party administrator. You can borrow the lesser of $50,000 or 50% of your total account balance. The minimum loan amount is $1,000. | Yes. You can borrow the lesser of $50,000 or 50% of your total account balance. The minimum loan amount is $1,000. |
| Distributions2 | Retirement, permanent disability, financial hardship3, severance of employment3, attainment of age 59½, death (upon which your beneficiary receives your benefits), transfer to purchase service credit. | Retirement, unforeseeable emergency3, severance of employment3, attainment of age 72, death (upon which your beneficiary receives your benefits), transfer to purchase service credit. |
| Rollovers | Approved balances from a 401(a), 401(k), 403(b) and governmental 457(b) plan or an IRA may be rolled over. You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options. | Approved balances from a 401(a), 401(k), 403(b) and governmental 457(b) plan or an IRA may be rolled over. You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options. |
| 403(b) Contract Exchanges | Will accept monies from current or former/deselected 403(b) providers. | n/a |
1 This additional contribution is not a combined limit between 457(b) and/or 403(b) plans. The Age 50-59, 64+ and the Age 60-63 Catch-up contribution provisions may not be used in the same year as the Standard 457 Catch-up contribution provision.
2 Withdrawals may be subject to ordinary income tax. Withdrawals made prior to age 59½ may incur a 10% early withdrawal penalty. The 10% early withdrawal penalty does not apply to 457(b) plan withdrawals.
3 As defined by the Internal Revenue Code.
